Dollar-Cost Averaging Calculator
Lower average cost is guaranteed. Higher return is not.
Work out Dollar-Cost Averaging. Lower average cost is guaranteed. Higher return is not. Free, with no account and nothing to install.
Comma separated, in order.
Average cost per unit
100
5 units for 500 · a lump sum would have won
The average cost under dollar-cost averaging is the harmonic mean of the prices, not the arithmetic mean. A fixed amount buys more units when the price is low and fewer when it is high, so the average paid is always below the average price — that is a mathematical certainty. It is not the same as a higher return. On a steadily rising asset a lump sum at the start wins comfortably, because more money is invested for longer. Averaging in wins on volatile or falling-then-recovering paths. What averaging in reliably buys is a reduction in timing risk, which is a real benefit even where it costs a little return. Whether that trade is worth making depends on how much a bad entry would matter to you.
How the Dollar-Cost Averaging Calculator works
Averaging in against a lump sum over a price path you supply. A fixed amount buys more units when the price is low, so the average cost is always below the average price — a mathematical certainty rather than a strategy.
Also known as: dca versus lump sum · average cost from recurring buys · is dollar cost averaging better · average price paid over time
Not financial advice. This calculator is for planning and illustration, not financial advice. Real products carry fees, taxes, and terms it does not model. Confirm figures with your lender or a qualified adviser before committing.
Frequently asked questions
Does averaging in beat a lump sum?
On volatile or falling-then-recovering paths, usually. On steadily rising assets, no — more money invested for longer wins, and markets rise more often than they fall.
Why is the average cost always below the average price?
Because a fixed amount buys more units when the price is low. The result is the harmonic mean of the prices, which is always below the arithmetic mean.
So what is averaging in actually for?
Reducing timing risk. It guarantees you will not put everything in at the worst possible moment, which is a real benefit even where it costs a little expected return.
How often should I buy?
Frequency matters far less than consistency. Weekly and monthly produce very similar results over years, and the main cost of buying more often is transaction fees.
Does this apply outside crypto?
The arithmetic is identical for any asset. It is simply discussed most in volatile markets, because that is where the timing risk it addresses is largest.
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