Dollar Cost Averaging Calculator
DCA Results
Calculate DCA results from periodic investments
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DCA vs Lump Sum
Compare DCA with lump sum investing
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Formula
Average Cost = Total Invested / Total Shares | Total Shares = Sum(Investment / Price at each period)
Frequently Asked Questions
What is dollar cost averaging?
Dollar cost averaging (DCA) is an investment strategy where you invest a fixed dollar amount at regular intervals regardless of the asset's price. You buy more shares when prices are low and fewer when prices are high, potentially lowering your average cost.
Is DCA better than lump sum investing?
Historically, lump sum investing outperforms DCA about two-thirds of the time because markets tend to go up over time. However, DCA reduces the risk of investing at a market peak and is psychologically easier for many investors.
How often should I invest with DCA?
Common DCA intervals are weekly, bi-weekly, or monthly. Monthly is most popular because it aligns with pay schedules. The key is consistency rather than frequency.