FINANCEVELIX / Investment calculators
Dollar-cost averaging (DCA) calculator
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Enter the amount you invest each time and the price at each purchase to see your average cost, holdings and return. The result is compared with investing the same total at the first price.
Dollar-cost averaging (DCA)
Use the same currency for every price, fee and amount. Changing this label does not convert values.
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Your calculation
Enter your assumptions, then select Calculate.
FINANCEVELIX / Method
How dollar-cost averaging returns are calculated
Each purchase buys amount × (1 − fee) ÷ price units. Adding up the purchases gives the units held, and the average cost per unit is the total invested ÷ units held. Because a fixed amount buys more units when the price is low, the average purchase price is the harmonic mean of the prices, which is never higher than their simple average.
Current value = units held × current price, profit or loss = current value − total invested, and return = profit or loss ÷ total invested × 100. The lump-sum comparison invests the same total at the first price.
Example: investing 100 at prices of 10, 20 and 40 buys 10 + 5 + 2.5 = 17.5 units for 300. The average cost is about 17.14, below the simple average of 23.33. At a current price of 40 the holdings are worth 700, a 133.33% return; buying 30 units at the first price would be worth 1,200.
Dollar-cost averaging spreads purchases over time. It does not guarantee a profit or protect against losses in a falling market.
Frequently asked questions
Is DCA better than investing a lump sum?
Neither is better in every case. If the price rises after the first purchase, a lump sum ends with more units; if the price falls first, regular purchases buy more units at lower prices. Enter your own price history to compare the two for a specific period.
Why is my average cost lower than the average of the prices?
With a fixed amount each time, you buy more units at low prices and fewer at high prices. The average cost is weighted by units, so before fees it equals the harmonic mean of the prices, which is always at or below their simple average.
Which prices should I enter?
Your actual fill prices from your exchange or broker trade history give the most accurate result. To test a past period, you can use the closing price on each purchase date from a historical price table.