Explore our Dollar Cost Averaging (DCA) Calculator, a strategic tool designed for investors aiming to mitigate market volatility and enhance portfolio growth. This calculator enables a disciplined investment approach by automating the DCA strategy, which involves regular, fixed-amount investments. Utilize our calculator to efficiently plan your investment frequency and amounts, and navigate market uncertainties with confidence.

Dividend Calculator

Mortgage Calculator

Auto Loan Calculator

Student Loan Calculator

401k Retirement Calculator

Dollar Cost Averaging Calculator

Calculator

Initial Investment

Monthly Investment

Start Month

December

Start Year

End Month

December

End Year

Total Amount Invested$7,500

Percent Gain103.52%

Total Gain$7,763.816

Final Portfolio Value$15,263.816

Investment Results

Dec 03, 2018

44.29

0.00%

1,100.00

0.00

1,100.00

Jan 02, 2019

37.84

-13.35%

1,200.00

-160.19

1,039.81

Feb 01, 2019

39.91

-7.95%

1,300.00

-103.31

1,196.69

Mar 01, 2019

42.11

-2.67%

1,400.00

-37.35

1,362.65

Apr 01, 2019

46.03

+5.97%

1,500.00

89.50

1,589.50

May 01, 2019

50.67

+15.61%

1,600.00

249.73

1,849.73

Jun 03, 2019

41.87

-4.21%

1,700.00

-71.52

1,628.48

Jul 01, 2019

48.69

+10.76%

1,800.00

193.74

1,993.74

Aug 01, 2019

50.36

+13.80%

1,900.00

262.12

2,162.12

Sep 03, 2019

49.89

+12.10%

2,000.00

241.94

2,241.94

Oct 01, 2019

54.47

+21.32%

2,100.00

447.76

2,547.76

Nov 01, 2019

62.04

+36.45%

2,200.00

801.83

3,001.83

Dec 02, 2019

64.26

+39.53%

2,300.00

909.25

3,209.25

Jan 02, 2020

73.06

+56.20%

2,400.00

1,348.73

3,748.73

Feb 03, 2020

75.08

+58.10%

2,500.00

1,452.38

3,952.38

Mar 02, 2020

72.86

+51.37%

2,600.00

1,335.52

3,935.52

Apr 01, 2020

58.74

+21.22%

2,700.00

572.83

3,272.83

May 01, 2020

70.48

+43.82%

2,800.00

1,226.95

4,026.95

Jun 01, 2020

78.69

+58.48%

2,900.00

1,696.03

4,596.03

Jul 01, 2020

89.02

+76.65%

3,000.00

2,299.38

5,299.38

Aug 03, 2020

106.53

+107.80%

3,100.00

3,341.75

6,441.75

Sep 01, 2020

131.46

+151.54%

3,200.00

4,849.24

8,049.24

Oct 01, 2020

114.42

+115.33%

3,300.00

3,805.89

7,105.89

Nov 02, 2020

106.56

+97.58%

3,400.00

3,317.75

6,717.75

Dec 01, 2020

120.44

+119.79%

3,500.00

4,192.78

7,692.78

Jan 04, 2021

127

+128.10%

3,600.00

4,611.78

8,211.78

Feb 01, 2021

131.64

+132.75%

3,700.00

4,911.80

8,611.80

Mar 01, 2021

125.6

+118.86%

3,800.00

4,516.67

8,316.67

Apr 01, 2021

120.89

+107.82%

3,900.00

4,204.79

8,104.79

May 03, 2021

130.27

+120.84%

4,000.00

4,833.65

8,833.65

Jun 01, 2021

122.36

+104.81%

4,100.00

4,297.27

8,397.27

Jul 01, 2021

135.15

+123.21%

4,200.00

5,175.02

9,375.02

Aug 02, 2021

143.27

+133.45%

4,300.00

5,738.28

10,038.28

Sep 01, 2021

150.38

+141.74%

4,400.00

6,236.45

10,636.45

Oct 01, 2021

140.65

+123.29%

4,500.00

5,548.24

10,048.24

Nov 01, 2021

146.88

+130.29%

4,600.00

5,993.32

10,593.32

Dec 01, 2021

162.7

+151.79%

4,700.00

7,134.30

11,834.30

Jan 03, 2022

179.72

+174.42%

4,800.00

8,372.28

13,172.28

Feb 01, 2022

172.42

+159.94%

4,900.00

7,837.24

12,737.24

Mar 01, 2022

161.36

+140.40%

5,000.00

7,020.20

12,020.20

Apr 01, 2022

172.34

+153.69%

5,100.00

7,838.13

12,938.13

May 02, 2022

156.18

+127.40%

5,200.00

6,624.95

11,824.95

Jun 01, 2022

147.24

+112.23%

5,300.00

5,948.07

11,248.07

Jul 01, 2022

137.56

+96.46%

5,400.00

5,208.59

10,608.59

Aug 01, 2022

159.92

+126.05%

5,500.00

6,932.98

12,432.98

Sep 01, 2022

156.62

+119.22%

5,600.00

6,676.42

12,276.42

Oct 03, 2022

141.24

+95.98%

5,700.00

5,470.89

11,170.89

Nov 01, 2022

149.37

+105.41%

5,800.00

6,113.90

11,913.90

Dec 01, 2022

147.3

+100.83%

5,900.00

5,948.79

11,848.79

Jan 03, 2023

124.22

+68.20%

6,000.00

4,092.24

10,092.24

Feb 01, 2023

144.44

+94.02%

6,100.00

5,735.01

11,835.01

Mar 01, 2023

144.54

+92.63%

6,200.00

5,743.21

11,943.21

Apr 03, 2023

165.29

+118.38%

6,300.00

7,457.76

13,757.76

May 01, 2023

168.69

+120.95%

6,400.00

7,740.76

14,140.76

Jun 01, 2023

179.38

+132.87%

6,500.00

8,636.87

15,136.87

Jul 03, 2023

191.7

+146.61%

6,600.00

9,676.48

16,276.48

Aug 01, 2023

194.84

+148.40%

6,700.00

9,943.09

16,643.09

Sep 01, 2023

188.97

+138.85%

6,800.00

9,441.68

16,241.68

Oct 02, 2023

173.3

+117.32%

6,900.00

8,094.86

14,994.86

Nov 01, 2023

173.52

+115.91%

7,000.00

8,113.90

15,113.90

Dec 01, 2023

191

+135.72%

7,100.00

9,636.44

16,736.44

Jan 02, 2024

185.4

+127.02%

7,200.00

9,145.74

16,345.74

Feb 01, 2024

186.62

+126.76%

7,300.00

9,253.30

16,553.30

Mar 01, 2024

179.66

+116.70%

7,400.00

8,635.94

16,035.94

Apr 01, 2024

170.03

+103.69%

7,500.00

7,776.39

15,276.39

What is Dollar Cost Averaging?

Dollar Cost Averaging (DCA) is an investment strategy where an investor divides up the total amount to be invested across periodic purchases of a target asset to reduce the impact of volatility on the overall purchase. The purchases occur regardless of the asset's price and at regular intervals. This strategy is often used in stock market investing but can be applied to any type of investment. DCA is particularly popular among investors who aim to build their portfolio steadily over time.

How Does Dollar Cost Averaging Work?

Dollar Cost Averaging works by spreading the total investment across multiple smaller purchases. Instead of investing a lump sum all at once, an investor invests smaller, fixed amounts regularly, such as monthly or quarterly. Thus, when the market price of the asset is high, the investor buys fewer shares, and when the price is low, the investor buys more shares. This approach can potentially lower the average cost per share over time, as it smooths out the purchase price in volatile markets.

Benefits of Dollar Cost Averaging

Reduces Impact of Volatility: By spreading out the investment over time, DCA helps mitigate the risks associated with market volatility.
Disciplined Investing: DCA encourages a disciplined investment approach, preventing emotional decision making.
Affordability and Accessibility: Investors can start with smaller amounts, making it accessible for those who cannot afford to invest a large sum at once.
Potential for Lower Average Cost: In fluctuating markets, DCA can lead to a lower average cost per share, as more shares are bought when prices are low.
Flexibility: DCA is a flexible strategy that can be adjusted based on financial circumstances and investment goals.

Example of Dollar-Cost Averaging

Let's consider an example where an investor decides to invest in a stock using the DCA strategy.

Plan: Invest $500 every month in a particular stock.
Duration: 6 months.

January

500

500 / 50 = 10

500

February

500

500 / 55 ≈ 9.09

1000

19.09

March

500

500 / 48 ≈ 10.42

1500

29.51

April

500

500 / 52 ≈ 9.62

2000

39.13

May

500

500 / 49 ≈ 10.20

2500

49.33

June

500

500 / 47 ≈ 10.64

3000

59.97

Average Cost Per Share: The total investment is $3,000, and the total number of shares purchased over the period is 59.97. Therefore, the average cost per share is $3,000 / 59.97 ≈ $50.01.

This example demonstrates how DCA smooths out the average purchase price of the shares and helps the investor avoid the risks of market timing.

FAQ

What is Dollar Cost Averaging?

Dollar Cost Averaging is an investment strategy where you regularly invest a fixed amount of money into a particular asset over time, regardless of its price. This strategy can help reduce the impact of market volatility on your investment.

How does this calculator help with DCA?

Our DCA calculator allows you to input your investment details, including start and end dates, monthly investment amounts, and historical asset prices, to visualize how your investments would have grown over time using the DCA strategy.

What information do I need to use this calculator?

You need to know the start and end dates of your investment period, how much you plan to invest each month, and the historical prices of the asset you're investing in.

Can I use this calculator for different types of investments?

Yes, the DCA calculator is versatile and can be used for various types of investments, as long as you have the historical price data for the asset.

How accurate is this calculator?

While our calculator provides a good estimate, the actual performance of your investments can vary due to market conditions and other factors not accounted for in this calculation.

Is Dollar Cost Averaging always the best strategy?

DCA is a popular strategy for mitigating risk in volatile markets, but it's not always the best strategy for every investor or situation. Consider consulting with a financial advisor to determine the best strategy for your individual needs.