Dollar-Cost Averaging Calculator (DCA)
See the average cost, units bought, value and return of investing the same amount at regular intervals (DCA), compared with investing all at once.
| # | Price | Units | Total units | Average cost per unit |
|---|
What it does
Dollar-cost averaging (DCA) means investing a fixed amount at regular intervals, for example every month, whatever the price. When the price is low the same money buys more units, so your average cost per unit is the harmonic mean of the prices and is never above their simple average. The calculator also compares the result with investing the whole amount at the first price.
How to use it
- Type the amount you invest each time.
- Type the price at each purchase, one per line, and the price today if it is different from the last one.
- See the average cost, the units, the value today and the return, compared with investing all at once.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
How does dollar-cost averaging work?
Investing 100 a month at prices of 50, 40, 25, 40 and 50 buys 13 units for 500, an average cost of 38.46, below the average price of 41. At 50 they are worth 650: +30%.
Is DCA better than investing all at once?
Not always. In the example, 500 at the first price of 50 buys 10 units and ends at 0%. In markets that mostly go up, investing at once often wins; DCA lowers the risk of buying everything at a peak.
Does it include fees and dividends?
No. Subtract any fee from the amount per purchase, and treat reinvested dividends as extra purchases.
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