Enter the amount you spent and the price for each buy to see your average cost, or plan a regular investment and compare it with a lump sum.
Enter the amount you spent and the price paid on each buy.
Assume the price moves in a straight line from a start price to an end price, and compare buying a fixed amount each period with investing it all at the start.
Dollar-cost averaging, or DCA, means investing the same amount of money at regular intervals, whatever the price. When the price is low, your money buys more coins, and when it is high, it buys fewer. Over time your average cost per coin lands between the highest and lowest prices you paid. It removes the need to pick the best moment to buy.
Your average cost is the total amount you spent divided by the total number of coins you bought. Because each purchase buys a different number of coins, this is a harmonic average of the prices, not a simple one. If you spend 100 at a price of 50 and 100 at a price of 100, you buy 2 and 1 coins, so the average cost is 200 รท 3, which is 66.67, and not 75.
The second calculator assumes a steady price change, and compares your regular buys with putting the same total in on day one. In a rising market a lump sum usually wins, since it is invested for longer. In a falling or choppy market DCA tends to do better. DCA also spreads out the risk of buying right before a drop, which is why many people prefer it. The straight-line price is only an assumption, so treat the comparison as an illustration.
It is investing a fixed amount at regular intervals, for example 100 dollars every month, whatever the price.
Divide the total money you spent by the total coins you bought. Do not average the prices directly.
It depends on how the price moves. A lump sum usually does better in a steadily rising market, and DCA often does better when prices fall or swing up and down. DCA also lowers the risk of a badly timed single purchase.
Yes. In the first calculator you can enter a different amount for every purchase.
You can enter up to 24 purchases.
Pick another tool to jump straight to it.