Purchase Price Calculator

Formula

The formula to calculate Total Purchase Price (PP) is:

\[ \text{PP} = \text{S} \times \text{APS} \]

Where:

$ \text{PP} $ is the Total Purchase Price ($)
$ \text{S} $ is the Total Number of Shares Purchased
$ \text{APS} $ is the Average Price Per Share ($)

What is Total Purchase Price?

Total Purchase Price (PP) is the total cost incurred to purchase a certain number of shares at an average price per share. This calculation helps investors determine the overall cost of their investment in a particular stock or security.

Example Calculation

Let's consider an example:

Total Number of Shares Purchased (S): 100 shares
Average Price Per Share (APS): $50

Using the formula to calculate the Total Purchase Price:

\[ \text{PP} = 100 \times 50 = 5000 \, \text{\$} \]

This demonstrates that with 100 shares purchased at an average price of $50 per share, the total purchase price would be $5000.