DCA Calculator

Dollar cost averaging is an investment strategy where you invest a fixed amount of money at regular intervals — for example, $100 every week — regardless of the asset's price. This approach removes the pressure of timing the market: you automatically buy more units when prices are low and fewer when prices are high, which can lower your average cost per unit over time.

Because you invest on a fixed schedule rather than in one lump sum, you avoid the risk of putting all your money in at a market peak. Volatility works in your favor: price dips mean your fixed investment buys more of the asset. Over long periods, this smoothing effect tends to produce a lower average purchase price than a single large investment made at a random point in time.

The annual return rate is a hypothetical average yearly growth rate you assume for the asset. It is used to project compound growth over the investment period — it is not based on actual historical prices. Experiment with different rates (such as 10%, 20%, or 50%) to see how sensitive the outcome is to your assumed growth.

The total return shows the projected value of your portfolio at the end of the investment period minus the total amount you invested. It represents the gain (or loss if the rate is negative) attributable to compound growth on your recurring investments. Keep in mind this is a mathematical projection, not a guarantee of real-world performance.

DCA is particularly popular in crypto because prices are highly volatile and market timing is notoriously difficult even for professionals. A systematic DCA plan removes emotion from the investment decision and can be automated through many exchanges. However, DCA does not protect against assets that decline permanently in value, so it should be combined with sound asset selection.