Dollar-Cost Averaging Calculator
Calculate your average cost per share across multiple purchases. Plan future buys to reach your target average and visualize profit/loss scenarios.
Understanding Dollar-Cost Averaging
Dollar-cost averaging (DCA) means investing a fixed amount regularly regardless of price. When prices drop, you buy more shares. When prices rise, you buy fewer. Over time, this smooths your average purchase price and removes the stress of trying to time the market. Most 401(k) contributions are a form of DCA.
This calculator helps you understand your current cost basis across multiple purchases and plan future buys. If a stock drops significantly from your average, you can see exactly how many shares at what price would lower your break-even point. This is useful for deciding whether to add to a position during a dip.
Remember: DCA into diversified index funds is a proven strategy. DCA into individual stocks that keep falling may just be throwing good money after bad. Use this calculator thoughtfully.
Current Position
New Purchase
$48.00
You lowered your cost basis by 4.0%
Reach Your Target
Your current average is $48.00. Set a target average below to see what you'd need to buy at different price points.
| If price drops to | Buy | Cost |
|---|---|---|
| $42.75 | 167 shares | $7,139 |
| $40.50 | 84 shares | $3,402 |
| $36.00 | 42 shares | $1,512 |
| $31.50 | 28 shares | $882 |
| $22.50 | 17 shares | $383 |
Average Cost
Your cost per share
Total Shares
Shares owned
Total Invested
Capital deployed
Cost Basis Breakdown
- Current Position
- New Purchase
Profit & Loss Scenarios
Break-Even
$48.00
Current Price
$48.00
Current P&L
$0
Return
+0.0%
| Price Change | Sell Price | Total Value | P&L | Return |
|---|---|---|---|---|
| -50% | $24.00 | $3,000 | -$3,000 | -50.0% |
| -30% | $33.60 | $4,200 | -$1,800 | -30.0% |
| -20% | $38.40 | $4,800 | -$1,200 | -20.0% |
| -10% | $43.20 | $5,400 | -$600 | -10.0% |
| +0% | $48.00 | $6,000 | $0 | +0.0% |
| +10% | $52.80 | $6,600 | $600 | +10.0% |
| +20% | $57.60 | $7,200 | $1,200 | +20.0% |
| +30% | $62.40 | $7,800 | $1,800 | +30.0% |
| +50% | $72.00 | $9,000 | $3,000 | +50.0% |
| +100% | $96.00 | $12,000 | $6,000 | +100.0% |
Profit/Loss Curve
Understanding Dollar-Cost Averaging
Dollar-cost averaging (DCA) is a strategy where you invest fixed amounts at regular intervals, regardless of market price. This approach helps reduce the impact of short-term volatility on your overall investment.
When prices drop, your fixed investment buys more shares. When prices rise, you buy fewer shares. Over time, this can result in a lower average cost per share compared to making a single lump-sum purchase at a market peak.
Averaging down means buying more shares when the price falls below your average cost. This lowers your break-even point but increases your exposure. Only average down on investments you have conviction in.
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