DCA calculator
See what investing a fixed amount on a regular schedule would be worth today. For example, $100 a week in Bitcoin over the last year would be worth about $5,506 today (+3.89%).
Total invested
$5,300.00
Value today
$5,506.22
Return
$206.22 (+3.89%)
Avg cost per BTC
$75,740.96
53 purchases, 0.06997535 BTC accumulated.
How the dca calculator works
How the backtest works
The calculator buys your chosen amount at the first daily closing price on or after each scheduled date, weekly or monthly, over the period you pick. It then values everything you bought at the latest price and compares that with the total you invested.
Why DCA lowers your average cost
A fixed amount buys more units when the price is low and fewer when it is high. Invest $100 at $50 and $100 at $25 and you own 6 units for $200, an average cost of $33.33, lower than the $37.50 average of the two prices.
DCA versus investing a lump sum
When prices rise steadily, investing everything at once usually ends up ahead because more money is invested for longer. DCA shines when prices are volatile or falling, and it removes the stress of trying to time the market.
Reading the results
The backtest uses past prices, which say nothing certain about the future. Try different assets, frequencies and periods to see how sensitive the outcome is to timing, and remember that results exclude fees and taxes.
Frequently asked questions
What is dollar-cost averaging (DCA)?+
Dollar-cost averaging means investing a fixed amount on a regular schedule, such as $100 every week, regardless of the price. You buy more units when prices are low and fewer when they are high, which smooths out your average cost.
What if I had invested $100 a week in Bitcoin for the last year?+
Investing $100 every week in Bitcoin over the last 12 months (53 buys, $5,300 in total) would be worth about $5,506 today, a return of +3.89%.
Is DCA better than investing a lump sum?+
Historically, investing a lump sum right away has often done better in rising markets, because more money is invested for longer. DCA reduces the risk of investing everything just before a fall and is easier to stick to emotionally.
Which prices does this calculator use?+
It uses daily closing prices for the last year, refreshed every day. Each scheduled purchase uses the first available close on or after the purchase date. Fees are not included.
Related
Results are estimates for illustration only and are not financial advice. See our terms of use.