Average entry price is the quantity-weighted price of the exposure you built. It is not usually the simple average of the prices on your order history. This guide shows how to combine entries correctly, translate USDT amounts into asset quantity, separate fees from the quoted entry price, and calculate the order needed to reach a target average.
The bigger fill has the bigger vote
Multiply every entry price by the quantity filled there. Add those position values, then divide by the total quantity. A large fill moves the average more than a small fill because it contributes more of the position.
- Keep the price and quantity of every fill together.
- Add position value and quantity separately before dividing.
- Use only fills that increase exposure in the same direction.
- Fill
- The part of an order that actually executed at a price.
- Position value
- Entry price multiplied by asset quantity.
- Cost basis
- The amount used to acquire the position, with fees handled according to the chosen accounting method.
Why a simple average gives the wrong answer
A simple average gives every price one equal vote. That works only when every fill has exactly the same quantity. If one order buys twice as much as another, it must carry twice as much weight in the combined entry.
Suppose one BTC fill is very small and another is much larger. Adding the two prices and dividing by two ignores how much exposure came from each price. The weighted method instead combines the actual value and quantity of the position.
Σ(Entry price × Quantity) ÷ Σ(Quantity)Σ(Entry price × Quantity)Quantity entries and USDT-amount entries
The standard linear formula needs asset quantity. If your history already shows BTC, ETH, SOL, or contract quantity, use it directly. If you only know how many USDT each purchase used, divide that amount by the row’s price to recover quantity first.
This conversion explains why equal USDT purchases do not give every price an equal quantity. A fixed $500 buys more BTC at a lower price, so the lower entry naturally receives more weight.
Asset quantity = USDT amount ÷ Entry priceTotal USDT spent ÷ Total asset quantity| What your record shows | What to enter | Conversion |
|---|---|---|
| 0.02 BTC at $68,000 | Asset quantity | No conversion needed |
| $500 spent at $68,000 | USDT amount | $500 ÷ $68,000 |
| Linear futures quantity | Contract or asset quantity | Use the linear weighted formula |
| Inverse contract quantity | Contract value | Check the venue’s inverse formula |
Worked example with two BTC entries
Assume you buy 0.01 BTC at $70,000 and later buy 0.02 BTC at $68,000. The second fill is twice as large, so the final average must sit closer to $68,000 than to $70,000.
The first fill contributes $700 of value and the second contributes $1,360. Together they create 0.03 BTC with $2,060 of entry value. Dividing $2,060 by 0.03 gives an average entry of $68,666.67.
0.03 BTC built across two prices
Do not calculate ($70,000 + $68,000) ÷ 2. That would produce $69,000 and overstate the true average because it ignores the larger second fill.
Where fees belong in the calculation
A trading platform often displays average entry as the weighted execution price before fees. Fees are then recorded separately in realized PnL or account cost. For planning, it is useful to preserve that quoted average and calculate a second number: the fee-adjusted break-even price.
For a spot or long position, entry fees increase the proceeds needed to break even and the estimated exit fee reduces what you receive. For a short, fees reduce the opening proceeds and add cost when buying back. Funding, slippage, taxes, and borrow costs are separate again.
(Entry value + Entry fees) ÷ [Quantity × (1 − Exit fee rate)](Entry value − Entry fees) ÷ [Quantity × (1 + Exit fee rate)]- Confirm whether the fee was charged in quote currency or deducted from the asset received.
- Use your actual maker or taker tier rather than a headline exchange rate.
- Keep funding and slippage outside the weighted execution price.
- Compare net PnL, not only the current price against the displayed average.
How to calculate the order for a target average
You can also reverse the weighted-average formula. Choose the price of a possible next fill and the average you want after that fill, then solve for the quantity to add.
A reachable target must lie between the current average and the proposed next price. If both the current average and next fill are below your target, adding that fill cannot move the result above both prices. The same logic applies in the opposite direction.
Current quantity × (Current average − Target average) ÷ (Target average − New fill price)Move $68,666.67 down to $68,000
Starting with 0.03 BTC at $68,666.67, a new fill at $64,000 needs 0.005 BTC. The added value is $320, producing $2,380 over 0.035 BTC, or exactly $68,000 before fees.
Partial closes, direction flips, and inverse contracts
The clean weighted formula is for entries that add exposure in the same direction. A partial close realizes PnL rather than behaving like another entry. If a trade closes the remaining position and opens the opposite direction, the new position normally starts a new accounting cycle.
Contract design matters too. Linear USDT contracts use price multiplied by quantity. Inverse contracts are quoted and settled differently and commonly use reciprocal-price math. Some settled products can also reset or update the displayed session average. Always match the formula to the exact instrument.
- Do not enter a sell that reduces a long as a negative buy row.
- Use the exchange statement for realized PnL after partial closes.
- Start a new calculation after a complete close and direction flip.
- Check whether the contract is linear, inverse, or periodically settled.
- Treat the exchange position panel as the authoritative open-position record.
Crypto Average Entry Price Calculator
Add flexible fill rows, switch between quantity and USDT input, include fees, load a reference price, and solve for a target average.
Frequently asked questions
Is average entry the same as the average of my prices?
Only when every fill has the same quantity. Otherwise, each price must be weighted by the amount filled there.
Can I calculate DCA purchases with this formula?
Yes. Enter every purchase price and quantity, or enter the quote amount used for each purchase. The result is the blended acquisition price for those buys.
Does the formula work for short positions?
Yes for same-direction additions to a linear short. The weighted entry formula is unchanged, while PnL and break-even direction differ.
Should trading fees be included in average entry?
Keep the displayed weighted execution price separate unless your accounting method defines cost basis differently. Include fees when calculating effective cost, break-even, and net PnL.
Why is my target average impossible?
The target must fall between the current average and the proposed next fill price. Adding a price on the wrong side cannot move the average through the current value.
Why does my exchange show another number?
The venue may deduct fees from asset quantity, reset a settlement-cycle average, use inverse-contract math, or account for partial closes differently. Check the instrument and statement.
Exchange mechanics and rates can change. These primary references were used to verify the concepts on this page.
Educational information only. Contract rules and account calculations vary by exchange; verify them before trading.