Calculate dollar cost averaging returns and average cost per unit. Free online DCA calculator with formula, examples, and FAQ for systematic investing.
Dollar Cost Averaging (DCA) is an investment strategy where you invest a fixed amount at regular intervals, regardless of the asset price. When prices are low, you buy more units; when prices are high, you buy fewer units. Over time, this naturally lowers your average cost per unit. DCA removes the need to time the market and reduces the impact of volatility on your portfolio.
Avg Cost = Total Invested / Total Units | Units per Period = Investment / Current PriceEach period, you invest a fixed dollar amount. The number of units purchased depends on the current price. Your average cost per unit is the total amount invested divided by total units accumulated. This average is typically lower than the simple average price during the investment period because more units are purchased when prices are lower.
| Input | Output |
|---|---|
| $500/month, Start: $100, End: $120, Volatility: 20%, 12 months | Avg Cost: ~$110, Total Units: ~54.5, ROI: ~9% |
| $1,000/month, Start: $50, End: $60, Volatility: 15%, 24 months | Avg Cost: ~$55, Total Units: ~436, ROI: ~9% |
| $200/month, Start: $200, End: $180, Volatility: 25%, 12 months | Avg Cost: ~$190, Total Units: ~12.6, Loss: ~5% |