Investment

Dollar Cost Averaging Calculator

Reduce market timing risk with systematic investing

DCA StrategyRisk ReductionSmart Investing

Disclaimer

This calculator is for educational purposes only. Results are estimates based on your inputs. Consult a qualified financial advisor for personalized advice. Read full disclaimer

Enter Investment Plan

Investment Amount per Period ($)

Investment Frequency

Duration (Months)

Initial Price per Share ($)

Final Price per Share ($)

Dollar Cost Averaging Strategy

Systematic investment approach that reduces market timing risk

Average\ Cost = \frac{\sum_{i=1}^{n} Investment_i}{\sum_{i=1}^{n} Shares_i}

Where:

Average Cost

Average price paid per share

Investment_i

Amount invested in period i

Shares_i

Shares purchased in period i

n

Total number of investment periods

Example:

Investing $500/month for 24 months smooths out price volatility and reduces timing risk

Benefits of Dollar Cost Averaging

📉 Reduces Market Timing Risk

By investing consistently, you avoid the risk of investing a large sum right before a market downturn.

💪 Builds Discipline

Automated regular investments create a consistent savings habit and remove emotional decisions.

🎯 Lower Average Cost

During market dips, your fixed investment buys more shares, lowering your average cost per share.

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