See the average cost and value when investing a fixed amount over time.
Dollar cost averaging buys a fixed dollar amount each period, so more shares are bought when prices are low and fewer when they are high. Using an average price approximates the shares acquired over the period. Automating fixed purchases removes emotion and timing risk, which is why DCA is a popular way to build positions steadily.
Dollar Cost Averaging
Shares = invested / average price; value = shares x ending price
Shares = invested / average price; value = shares x ending price Dollar cost averaging buys a fixed dollar amount each period, so more shares are bought when prices are low and fewer when they are high. Using an average price approximates the shares acquired over the period.
Automating fixed purchases removes emotion and timing risk, which is why DCA is a popular way to build positions steadily.
This calculator takes 4 inputs: Monthly investment, Number of months, Starting price, Ending price. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.