Dollar Cost Average Calculator
Enter multiple buy prices and quantities to calculate your average cost basis using the dollar cost averaging method.
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Dollar Cost Average
Average Cost per Unit$100.00
Total Units30
Total Invested$3,000.00
FAQ
What is dollar cost averaging?›
Dollar cost averaging (DCA) is a strategy where you invest a fixed amount at regular intervals regardless of price. This reduces the impact of volatility because you buy more units when prices are low and fewer when prices are high, resulting in a lower average cost over time.
Is DCA better than investing a lump sum?›
Historically, lump-sum investing outperforms DCA about two-thirds of the time because markets trend upward. However, DCA reduces the risk of investing a large amount at a market peak and can be psychologically easier for investors who are uncomfortable with short-term volatility.