Dollar Cost Averaging
See the average cost and value when investing a fixed amount over time.
About Dollar Cost Averaging
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.
Formula
Dollar Cost Averaging
Shares = invested / average price; value = shares x ending price
- average price
- average of the start and end price paid over time
Worked example
With the default values below, Dollar Cost Averaging returns Total Invested of $3,600.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Monthly investment
- 300
- Number of monthsminimum 1
- 12
- Starting price
- 45
- Ending price
- 60
Results
- Total Invested
- $3,600.00
- Shares Bought
- 68.57
- Final Value
- $4,114.29
- Gain Percent
- 14.29%
Step by step
- 1Values used
- 2Dollar Cost Averaging
- 3Total Invested= 3,600.00
- 4Shares Bought= 68.57
- 5Final Value= 4,114.29
- 6Gain Percent= 14.29
Assumptions and limits
- The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Frequently Asked Questions
How is Dollar Cost Averaging calculated?
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.
Why does Dollar Cost Averaging matter?
Automating fixed purchases removes emotion and timing risk, which is why DCA is a popular way to build positions steadily.
What values do I need to enter?
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.