DCA Calculator
Simulate your Dollar Cost Averaging strategy and see potential returns over time.
Dollar Cost Averaging Calculator
* This is a simulation. Actual results will vary based on real price movements.
Total Invested
$4,800.00
Current Value
$5,850.75
Profit/Loss
+$1,050.75
ROI
+21.89%
Value
$7,200.00
Profit/Loss
+$2,400.00
Lump sum outperformed DCA in this scenario
What is Dollar Cost Averaging?
Dollar Cost Averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of the asset's price.
This approach helps reduce the impact of volatility by spreading your purchases over time, potentially lowering your average cost per coin.
Benefits of DCA
- ✓ Reduces emotional decision-making
- ✓ Lowers impact of market volatility
- ✓ Simple and consistent approach
- ✓ No need to time the market
- ✓ Builds investing discipline
DCA vs Lump Sum Investing
| Aspect | DCA | Lump Sum |
|---|---|---|
| Risk | Lower - spreads risk over time | Higher - all capital at once |
| Timing | No timing needed | Requires market timing |
| Emotion | Reduces emotional decisions | Can be stressful |
| Returns | Potentially lower in bull markets | Higher if timed correctly |
Historical data shows lump sum investing outperforms DCA about 2/3 of the time in rising markets, but DCA provides better risk-adjusted returns and psychological comfort for most investors.