DCA (Dollar-Cost Averaging) Calculator

Calculate your average price for crypto or stock investments.

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What is Dollar-Cost Averaging (DCA)?

Dollar-Cost Averaging is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of the asset's price. Instead of trying to "time the market" by buying everything at the lowest price (which is nearly impossible), DCA helps you smooth out your average purchase price over time.

How DCA Works: An Ethereum (ETH) Example

Imagine you decide to invest $100 into Ethereum (ETH) on the first of every month for three months. Here's how it might play out:

Month 1: You invest $100 when the price of ETH is $2,000. You acquire 0.05 ETH.

Month 2: The market dips, and you invest another $100 when ETH is $1,500. This time, you acquire 0.0667 ETH.

Month 3: The market recovers, and you invest your final $100 when ETH is $2,500. You acquire 0.04 ETH.

After three months, you have invested a total of $300 and acquired a total of 0.1567 ETH (0.05 + 0.0667 + 0.04). Your average buy price isn't the average of the prices ($2000), but rather your total investment divided by your total coins: $300 / 0.1567 ETH = approximately $1,914 per ETH. By buying during the dip, you lowered your average cost.

Key Benefits of Dollar-Cost Averaging

Reduces Risk

It minimizes the risk of investing a large sum at a market peak.

Removes Emotion

It creates a disciplined, unemotional investing habit, preventing panic-selling or FOMO-buying.

Accessible for Beginners

You don't need a large lump sum to start; you can begin investing with small, regular amounts.