Dollar Cost Averaging Calculator
Input a stock ticker and use the dollar cost averaging (DCA) calculator to understand the potential returns of your investments over time.
Your DCA Summary
Total Amount Invested
$38,000
Final Portfolio Value
$79,557.14
Total Gain
$41,557.14
Percent Gain
109.36%
Portfolio Value Over Time
Your DCA Results by Date
| Date | Price ($) | Invested ($) | Portfolio Value ($) | Percent Gain (%) | Total Gain ($) |
|---|---|---|---|---|---|
| Jan 02, 2020 | $72.88 | $10,500 | $10,500 | $0 | 0.00% |
| Feb 03, 2020 | $74.89 | $11,000 | $11,289.59 | $289.59 | 2.63% |
| Mar 02, 2020 | $72.67 | $11,500 | $11,454.92 | $-45.08 | -0.39% |
| Apr 01, 2020 | $58.59 | $12,000 | $9,735.50 | $-2,264.50 | -18.87% |
| May 01, 2020 | $70.31 | $12,500 | $12,182.93 | $-317.07 | -2.54% |
| Jun 01, 2020 | $78.49 | $13,000 | $14,100.32 | $1,100.32 | 8.46% |
| Jul 01, 2020 | $88.80 | $13,500 | $16,452.46 | $2,952.46 | 21.87% |
| Aug 03, 2020 | $106.27 | $14,000 | $20,189.22 | $6,189.22 | 44.21% |
| Sep 01, 2020 | $131.13 | $14,500 | $25,412.13 | $10,912.13 | 75.26% |
| Oct 01, 2020 | $114.13 | $15,000 | $22,617.65 | $7,617.65 | 50.78% |
| Nov 02, 2020 | $106.29 | $15,500 | $21,563.96 | $6,063.96 | 39.12% |
| Dec 01, 2020 | $120.13 | $16,000 | $24,871.80 | $8,871.80 | 55.45% |
| Jan 04, 2021 | $126.68 | $16,500 | $26,727.91 | $10,227.91 | 61.99% |
| Feb 01, 2021 | $131.31 | $17,000 | $28,204.79 | $11,204.79 | 65.91% |
| Mar 01, 2021 | $125.28 | $17,500 | $27,409.57 | $9,909.57 | 56.63% |
| Apr 01, 2021 | $120.59 | $18,000 | $26,883.46 | $8,883.46 | 49.35% |
| May 03, 2021 | $129.94 | $18,500 | $29,467.88 | $10,967.88 | 59.29% |
| Jun 01, 2021 | $122.05 | $19,000 | $28,178.58 | $9,178.58 | 48.31% |
| Jul 01, 2021 | $134.81 | $19,500 | $31,624.58 | $12,124.58 | 62.18% |
| Aug 02, 2021 | $142.91 | $20,000 | $34,024.73 | $14,024.73 | 70.12% |
| Sep 01, 2021 | $150 | $20,500 | $36,212.75 | $15,712.75 | 76.65% |
| Oct 01, 2021 | $140.30 | $21,000 | $34,370.99 | $13,370.99 | 63.67% |
| Nov 01, 2021 | $146.51 | $21,500 | $36,392.33 | $14,892.33 | 69.27% |
| Dec 01, 2021 | $162.29 | $22,000 | $40,812.00 | $18,812.00 | 85.51% |
| Jan 04, 2022 | $177 | $22,500 | $45,011.21 | $22,511.21 | 100.05% |
| Feb 01, 2022 | $171.98 | $23,000 | $44,234.62 | $21,234.62 | 92.32% |
| Mar 01, 2022 | $160.95 | $23,500 | $41,897.62 | $18,397.62 | 78.29% |
| Apr 01, 2022 | $171.91 | $24,000 | $45,250.66 | $21,250.66 | 88.54% |
| May 02, 2022 | $155.78 | $24,500 | $41,504.88 | $17,004.88 | 69.41% |
| Jun 01, 2022 | $146.88 | $25,000 | $39,633.63 | $14,633.63 | 58.53% |
| Jul 01, 2022 | $137.22 | $25,500 | $37,527.00 | $12,027.00 | 47.16% |
| Aug 01, 2022 | $159.52 | $26,000 | $44,125.62 | $18,125.62 | 69.71% |
| Sep 01, 2022 | $156.23 | $26,500 | $43,715.56 | $17,215.56 | 64.96% |
| Oct 03, 2022 | $140.89 | $27,000 | $39,923.19 | $12,923.19 | 47.86% |
| Nov 01, 2022 | $149 | $27,500 | $42,721.27 | $15,221.27 | 55.35% |
| Dec 01, 2022 | $146.93 | $28,000 | $42,627.76 | $14,627.76 | 52.24% |
| Jan 03, 2023 | $123.90 | $28,500 | $36,446.23 | $7,946.23 | 27.88% |
| Feb 01, 2023 | $144.07 | $29,000 | $42,879.41 | $13,879.41 | 47.86% |
| Mar 01, 2023 | $144.18 | $29,500 | $43,412.15 | $13,912.15 | 47.16% |
| Apr 03, 2023 | $164.87 | $30,000 | $50,141.84 | $20,141.84 | 67.14% |
| May 01, 2023 | $168.27 | $30,500 | $51,675.88 | $21,175.88 | 69.43% |
| Jun 01, 2023 | $178.93 | $31,000 | $55,449.58 | $24,449.58 | 78.87% |
| Jul 03, 2023 | $191.22 | $31,500 | $59,758.19 | $28,258.19 | 89.71% |
| Aug 01, 2023 | $194.35 | $32,000 | $61,236.35 | $29,236.35 | 91.36% |
| Sep 01, 2023 | $188.50 | $32,500 | $59,893.11 | $27,393.11 | 84.29% |
| Oct 02, 2023 | $172.87 | $33,000 | $55,426.91 | $22,426.91 | 67.96% |
| Nov 01, 2023 | $173.08 | $33,500 | $55,994.24 | $22,494.24 | 67.15% |
| Dec 01, 2023 | $190.52 | $34,000 | $62,136.37 | $28,136.37 | 82.75% |
| Jan 02, 2024 | $184.94 | $34,500 | $60,816.50 | $26,316.50 | 76.28% |
| Feb 01, 2024 | $186.15 | $35,000 | $61,714.41 | $26,714.41 | 76.33% |
| Mar 01, 2024 | $179.21 | $35,500 | $59,913.58 | $24,413.58 | 68.77% |
| Apr 01, 2024 | $169.60 | $36,000 | $57,200.76 | $21,200.76 | 58.89% |
| May 01, 2024 | $168.88 | $36,500 | $57,457.93 | $20,957.93 | 57.42% |
| Jun 03, 2024 | $193.81 | $37,000 | $66,439.85 | $29,439.85 | 79.57% |
| Jul 01, 2024 | $216.50 | $37,500 | $74,718.19 | $37,218.19 | 99.25% |
| Aug 01, 2024 | $218.11 | $38,000 | $75,773.83 | $37,773.83 | 99.40% |
What is Dollar Cost Averaging?
Dollar cost averaging (DCA) is an investment strategy where a fixed dollar amount is invested regularly, regardless of the asset's price. This strategy aims to reduce the impact of volatility by spreading out investments 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.
Mathematically, DCA can be expressed as:
\( \text{Average Cost Per Share} = \frac{\text{Total Investment}}{\text{Total Shares Purchased}} \)
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.
How to Use the DCA Calculator
This DCA calculator helps you estimate the potential returns of your investments over time. Follow these steps to use the calculator:
- Ticker: Enter the stock ticker symbol (e.g., AAPL).
- Initial Investment: Enter the initial amount you plan to invest.
- Recurring Investment: Enter the amount you plan to invest at each interval.
- Frequency: Select the frequency of your investments (Daily, Weekly, Monthly, Quarterly, Yearly).
- Start Month/Year: Select the start month and year for your investments.
- End Month/Year: Select the end month and year for your investments.
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 $1,000 every month in a particular stock.
Duration: 6 months.
| Month | Price ($) | Investment ($) | Shares Purchased | Total Investment ($) | Total Shares |
|---|---|---|---|---|---|
| January | $100 | $1,000 | 10 | $1,000 | 10 |
| February | $110 | $1,000 | 9.09 | $2,000 | 19.09 |
| March | $95 | $1,000 | 10.53 | $3,000 | 29.62 |
| April | $105 | $1,000 | 9.52 | $4,000 | 39.14 |
| May | $100 | $1,000 | 10 | $5,000 | 49.14 |
| June | $90 | $1,000 | 11.11 | $6,000 | 60.25 |
The average cost per share in this example is calculated as:
\( \text{Average Cost Per Share} = \frac{\$6,000}{60.25} \approx $99.58 \)
Frequently Asked Questions (FAQ)
1. What is the difference between Dollar Cost Averaging and Lump-Sum Investing?
Dollar Cost Averaging involves spreading out investments over time, whereas Lump-Sum Investing means investing the entire amount at once. DCA reduces the impact of volatility and avoids market timing risks, while Lump-Sum Investing can potentially yield higher returns if the investment is made at a favorable time.
2. Can Dollar Cost Averaging Guarantee Profits?
No, Dollar Cost Averaging cannot guarantee profits. It is a risk management strategy that aims to reduce the impact of market volatility. The performance of the underlying investments will ultimately determine the returns.
3. Is Dollar Cost Averaging Suitable for All Types of Investments?
DCA is commonly used for stocks, mutual funds, and ETFs. It is not typically used for investments that do not fluctuate in value, such as savings accounts or certificates of deposit (CDs).
4. How Often Should I Invest with Dollar Cost Averaging?
The frequency of investments can vary based on individual preferences and financial goals. Common intervals include monthly, quarterly, and yearly investments. Regular investments help maintain a disciplined approach.
5. What are the Potential Drawbacks of Dollar Cost Averaging?
One potential drawback is that DCA might result in lower returns compared to Lump-Sum Investing during a bull market. Additionally, transaction fees can add up with frequent purchases, potentially reducing overall returns.
Disclaimer
This DCA calculator provides estimates based on the inputs you provide and assumptions made in the calculation process. Please consider the following:
- These estimates do not guarantee future results and are for illustrative purposes only.
- The calculations assume constant rates of return and investment intervals, which may not reflect actual market conditions.
- Investment returns can vary and may be affected by factors such as market fluctuations, economic conditions, and changes in tax laws.
- The calculator does not account for transaction fees, account fees, or other costs that may impact your returns.
- Past performance of an investment is not indicative of future results.
- We strongly recommend consulting with a qualified financial advisor to assess your individual investment goals and risk tolerance.
By using this calculator, you acknowledge that the calculations are for informational purposes only and should not be construed as financial advice. Please consult with a financial advisor for personalized advice. See our full terms of service for more information.