# VWAP Calculator

Typical Price (\$):
Interval Volume:
Cumulative Volume:

VWAP:

## VWAP Calculator

The VWAP (Volume-Weighted Average Price) Calculator is a tool used in financial markets to calculate the average price at which a security has been traded throughout the trading day, weighted by the volume of each trade.

It helps traders and investors assess the average price at which a security was bought or sold, taking into account the volume of trading activity.

### Formula

The formula for VWAP is calculated by dividing the cumulative total of price multiplied by volume for each trade by the cumulative total volume.

VWAP = (Σ(Price × Volume)) / ΣVolume

### Example

Let’s consider a trading day where a security has traded at various prices and volumes. Here is a simplified example:

Trade 1: Price = \$10, Volume = 1,000 Trade 2: Price = \$12, Volume = 500 Trade 3: Price = \$11, Volume = 800

Using the VWAP formula:

VWAP = ((\$10 × 1,000) + (\$12 × 500) + (\$11 × 800)) / (1,000 + 500 + 800) VWAP = (\$10,000 + \$6,000 + \$8,800) / 2,300 VWAP ≈ \$8.69