How To Calculate Weighted Price Complete Guide

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how to calculate weighted price. Find the sum of all weights. The higher the share price the bigger the impact on the index value.

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How to calculate weighted average when the weights dont add up to one. In order to calculate your weighted average price per share you can use the following formula. Multiply each transaction price by the corresponding number of shares.

The last step is to divide 3000 with the total shares which is 150.

The basic formula for a weighted average where the weights add up to 1 is x1 w1 x2 w2 x3 w3 and so on where x is each number in your set and w is the corresponding weighting factor. To find the weight of a particular component of an index divide its price by the sum of all the components in the index which looks like. Typical Price 201518 3 1767. List the various prices at which you bought the stock along with the number of shares you acquired in each transaction.