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Dollar Cost Averaging Calculator
Calculator
Period
Initial Investment
Recurring Investment
Start Month
Start Year
End Month
End Year
Total Amount Invested$8,200
Percent Gain170.74%
Total Gain$14,000.462
Final Portfolio Value$22,200.462
Investment Results
Dec 03, 2018
44.13
0.00%
1,100.00
0.00
1,100.00
Jan 02, 2019
37.71
-13.34%
1,200.00
-160.03
1,039.97
Feb 01, 2019
39.76
-7.96%
1,300.00
-103.49
1,196.51
Mar 01, 2019
41.96
-2.66%
1,400.00
-37.29
1,362.71
Apr 01, 2019
45.86
+5.96%
1,500.00
89.37
1,589.37
May 01, 2019
50.48
+15.59%
1,600.00
249.49
1,849.49
Jun 03, 2019
41.72
-4.20%
1,700.00
-71.46
1,628.54
Jul 01, 2019
48.52
+10.78%
1,800.00
193.98
1,993.98
Aug 01, 2019
50.18
+13.80%
1,900.00
262.19
2,162.19
Sep 03, 2019
49.71
+12.10%
2,000.00
241.94
2,241.94
Oct 01, 2019
54.27
+21.31%
2,100.00
447.60
2,547.60
Nov 01, 2019
61.82
+36.46%
2,200.00
802.02
3,002.02
Dec 02, 2019
64.02
+39.52%
2,300.00
908.86
3,208.86
Jan 02, 2020
72.8
+56.21%
2,400.00
1,348.93
3,748.93
Feb 03, 2020
74.81
+58.10%
2,500.00
1,452.44
3,952.44
Mar 02, 2020
72.59
+51.35%
2,600.00
1,335.15
3,935.15
Apr 01, 2020
58.53
+21.22%
2,700.00
572.95
3,272.95
May 01, 2020
70.23
+43.83%
2,800.00
1,227.20
4,027.20
Jun 01, 2020
78.4
+58.47%
2,900.00
1,695.70
4,595.70
Jul 01, 2020
88.7
+76.65%
3,000.00
2,299.47
5,299.47
Aug 03, 2020
106.15
+107.81%
3,100.00
3,342.03
6,442.03
Sep 01, 2020
130.98
+151.53%
3,200.00
4,848.92
8,048.92
Oct 01, 2020
114.01
+115.34%
3,300.00
3,806.09
7,106.09
Nov 02, 2020
106.18
+97.59%
3,400.00
3,318.05
6,718.05
Dec 01, 2020
120
+119.78%
3,500.00
4,192.45
7,692.45
Jan 04, 2021
126.54
+128.10%
3,600.00
4,611.69
8,211.69
Feb 01, 2021
131.17
+132.76%
3,700.00
4,912.15
8,612.15
Mar 01, 2021
125.15
+118.87%
3,800.00
4,516.90
8,316.90
Apr 01, 2021
120.46
+107.83%
3,900.00
4,205.22
8,105.22
May 03, 2021
129.8
+120.84%
4,000.00
4,833.67
8,833.67
Jun 01, 2021
121.92
+104.81%
4,100.00
4,297.39
8,397.39
Jul 01, 2021
134.66
+123.21%
4,200.00
5,174.87
9,374.87
Aug 02, 2021
142.75
+133.44%
4,300.00
5,738.09
10,038.09
Sep 01, 2021
149.83
+141.73%
4,400.00
6,235.95
10,635.95
Oct 01, 2021
140.15
+123.31%
4,500.00
5,548.79
10,048.79
Nov 01, 2021
146.34
+130.27%
4,600.00
5,992.62
10,592.62
Dec 01, 2021
162.11
+151.79%
4,700.00
7,134.11
11,834.11
Jan 03, 2022
179.08
+174.44%
4,800.00
8,372.93
13,172.93
Feb 01, 2022
171.8
+159.95%
4,900.00
7,837.42
12,737.42
Mar 01, 2022
160.77
+140.39%
5,000.00
7,019.64
12,019.64
Apr 01, 2022
171.72
+153.69%
5,100.00
7,838.30
12,938.30
May 02, 2022
155.61
+127.39%
5,200.00
6,624.49
11,824.49
Jun 01, 2022
146.71
+112.23%
5,300.00
5,948.19
11,248.19
Jul 01, 2022
137.07
+96.46%
5,400.00
5,209.10
10,609.10
Aug 01, 2022
159.34
+126.05%
5,500.00
6,932.78
12,432.78
Sep 01, 2022
156.06
+119.23%
5,600.00
6,676.85
12,276.85
Oct 03, 2022
140.73
+95.98%
5,700.00
5,470.88
11,170.88
Nov 01, 2022
148.84
+105.42%
5,800.00
6,114.63
11,914.63
Dec 01, 2022
146.77
+100.83%
5,900.00
5,948.93
11,848.93
Jan 03, 2023
123.77
+68.20%
6,000.00
4,092.11
10,092.11
Feb 01, 2023
143.92
+94.02%
6,100.00
5,735.13
11,835.13
Mar 01, 2023
144.02
+92.63%
6,200.00
5,743.35
11,943.35
Apr 03, 2023
164.69
+118.37%
6,300.00
7,457.48
13,757.48
May 01, 2023
168.08
+120.95%
6,400.00
7,740.66
14,140.66
Jun 01, 2023
178.73
+132.87%
6,500.00
8,636.65
15,136.65
Jul 03, 2023
191.01
+146.62%
6,600.00
9,676.65
16,276.65
Aug 01, 2023
194.13
+148.40%
6,700.00
9,942.52
16,642.52
Sep 01, 2023
188.29
+138.85%
6,800.00
9,441.86
16,241.86
Oct 02, 2023
172.68
+117.32%
6,900.00
8,095.34
14,995.34
Nov 01, 2023
172.89
+115.91%
7,000.00
8,113.58
15,113.58
Dec 01, 2023
190.31
+135.72%
7,100.00
9,636.39
16,736.39
Jan 02, 2024
184.73
+127.02%
7,200.00
9,145.67
16,345.67
Feb 01, 2024
185.95
+126.76%
7,300.00
9,253.62
16,553.62
Mar 01, 2024
179.01
+116.70%
7,400.00
8,635.81
16,035.81
Apr 01, 2024
169.42
+103.69%
7,500.00
7,776.73
15,276.73
May 01, 2024
168.69
+101.46%
7,600.00
7,710.91
15,310.91
Jun 03, 2024
193.59
+129.49%
7,700.00
9,970.92
17,670.92
Jul 01, 2024
216.26
+154.36%
7,800.00
12,040.24
19,840.24
Aug 01, 2024
217.87
+154.28%
7,900.00
12,187.94
20,087.94
Sep 03, 2024
222.52
+157.71%
8,000.00
12,616.68
20,616.68
Oct 01, 2024
225.96
+159.70%
8,100.00
12,935.40
21,035.40
Nov 01, 2024
222.66
+154.00%
8,200.00
12,628.19
20,828.19
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
50
500
500 / 50 = 10
500
10
February
55
500
500 / 55 ≈ 9.09
1000
19.09
March
48
500
500 / 48 ≈ 10.42
1500
29.51
April
52
500
500 / 52 ≈ 9.62
2000
39.13
May
49
500
500 / 49 ≈ 10.20
2500
49.33
June
47
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.