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Average Cost Price Computation - How is it done by MProfit?

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  • Average Cost Price Computation - How is it done by MProfit?

    How does MProfit compute "Average Cost Price" for a Stock? I have the following data entered as Transactions in a portfolio (This is for Nifty BeES):
    Trade Type Qty Price
    buy 1 1,099.00
    buy 1 1,122.00
    buy 1 1,093.17
    buy 1 1,205.40
    buy 1 1,205.99
    sell -1 1,225.65
    buy 1 1,226.79
    buy 1 1,216.88
    buy 1 1,241.50
    buy 1 1,246.50
    buy 2 1,246.49
    buy 1 1,255.80
    buy 1 1,219.71
    buy 1 1,219.19
    MProfit reports the "Average Cost Price" as Rs. 1,211.22. My broker is reporting this as Rs. 1,207.67. I have not entered any fees or other charges into MProfit. Just the number of units/stocks, and the price a which purchased – as given above.

    Can someone help here?

  • #2
    Spoke to MProfit Support and have the following clarification from them.
    • The average cost price is computed to multiplying the purchase price per share, with the number of shares purchased in each transaction. Plus Brokerage. Then this total cost price is divided by the total number of shares purchased. However, if any shares are sold, then they are removed from the computation on a first in - first out principle.
    • So, if I have purchased 10 shares in 10 different transactions, but also sold 1 share in between, then the total cost will not include the cost of the very first share purchased. The total cost of the remaining 9 shares will be divided by the number of shares - 9 - to arrive at the average cost price.

    With this, the figure mentioned in MProfit has been verified with Excel.

    I have to follow up with my broker to figure out how they are computing the average cost price.

    Comment


    • #3
      Dear Gautam Satpathy,

      MProfit computes average purchase price based on FIFO taking into accounts all buys and sell.

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