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How-to guide

How to Calculate Cost Basis: Formula, Steps & Examples

Learn how to calculate Cost Basis — the formula explained step by step, with worked examples and a free calculator to check your answer.

By Aarav Mehta, CFA, MBA Finance · Updated Jun 2026 · 2 min read

Calculating your cost basis per share is straightforward once you know the Cost Basis formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the Cost Basis Calculator.

What is Cost Basis?

The Cost Basis calculation tells you your cost basis per share from a few simple inputs. The figure you are solving for here is the cost basis per share, expressed in INR.

The Cost Basis formula

The core formula is:

Cost basis per share = (Total amount invested + Fees & charges) ÷ Number of shares ÷ units

Here is what each input means:

  • Total amount invested — a money amount. Example: ₹10,000.
  • Fees & charges — a money amount. Example: ₹100.
  • Number of shares/units — a number. Example: 100.

How to calculate it step by step

  • Write down the total amount invested (for example, ₹10,000).
  • Write down the fees & charges (for example, ₹100).
  • Write down the number of shares/units (for example, 100).
  • Apply the formula above to get your cost basis per share.
  • Double-check the result with the Cost Basis Calculator.

Worked examples

Example 1

Input / OutputValue
Total amount invested₹10,000
Fees & charges₹100
Number of shares/units100
Cost basis per share₹101.0000
Total cost basis₹10,100.00

With total amount invested of ₹10,000, fees & charges of ₹100 and number of shares/units of 100, the cost basis per share works out to ₹101.0000.

Example 2

With total amount invested of ₹20,000, fees & charges of ₹100 and number of shares/units of 100, the cost basis per share works out to ₹201.0000.

ResultValue
Cost basis per share₹201.0000
Total cost basis₹20,100.00

Example 3

With total amount invested of ₹5,000, fees & charges of ₹100 and number of shares/units of 100, the cost basis per share works out to ₹51.0000.

ResultValue
Cost basis per share₹51.0000
Total cost basis₹5,100.00

Tips for an accurate result

  • Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
  • Round only at the very end. Rounding inputs early can shift the final answer noticeably.
  • Re-run the numbers whenever an input changes, rather than estimating from an old result.
  • Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).

Prefer not to do the maths by hand? — the Cost Basis Calculator does it instantly, for free, with the formula and a worked example built in.

Continue exploring finance calculators with these tools: SIP Calculator, EMI Calculator, CAGR Calculator, FD Calculator, Effective Annual Rate (EAR) Calculator.

Calculators in this guide

Frequently asked questions

The formula is: Cost basis per share = (Total amount invested + Fees & charges) ÷ Number of shares ÷ units. With total amount invested of ₹10,000, fees & charges of ₹100 and number of shares/units of 100, the cost basis per share works out to ₹101.0000.

Gather each input, apply the formula step by step keeping your units consistent, and round only at the end. You can verify your answer instantly with the Cost Basis Calculator.

It uses the standard formula with exact arithmetic, so the result is correct for the inputs you enter. Bear in mind that real-world outcomes can still differ when underlying assumptions change.

The cost basis per share is expressed in INR. Make sure your inputs use matching units so the result is correct.

Aarav Mehta · CFA, MBA Finance

Aarav reviews every finance formula on CalcHub for accuracy.