DCA & Average Price Calculator
Explore a recurring investment scenario or find the weighted average price of past purchases.
DCA and average price calculation notes
- 01
Recurring planContributions compound at the selected interval.
- 02
Fee awareAnnual fees reduce the assumed return before projection.
- 03
Weighted basisAverage price is calculated from actual units acquired.
Projections are hypothetical, exclude taxes and do not predict future market returns.
About this tool
A DCA calculator projects how recurring investments may accumulate over time, while an average price calculator combines multiple purchases into one weighted cost basis. Both use the actual amount invested rather than a simple average of prices.
How it works
Projection mode converts the assumed effective annual return after annual fee drag to a periodic rate. Contributions arrive at each completed period-end; a partial final period earns growth but adds no extra contribution. Weighted average price equals total purchase cost divided by total units acquired.
| Parameter | How it is used |
|---|---|
| Initial investment | Starting capital in the recurring plan. |
| Contribution schedule | Amount and frequency of future purchases. |
| Return and fees | Hypothetical annual growth after costs. |
| Purchase lots | Price and amount for weighted average cost. |
Equal dollars do not buy equal units
Two purchases: $200 at $50 per unit and $200 at $40 per unit. Purchase fees are excluded.
$200 ÷ $50 = 4 units. $200 ÷ $40 = 5 units. $400 ÷ 9 = $44.4444 per unit.
9 units at a weighted average of about $44.44, not the $45 simple average of the two prices.
A fixed cash contribution buys more units at the lower price. This changes the cost basis, but it does not guarantee a positive return.
How to use this tool
- Choose projection mode for future contributions or average-price mode for past buys.
- Enter the contribution schedule and assumptions, or add each purchase lot.
- Review projected capital, growth and cost basis before changing an investment plan.
Frequently asked questions
Is DCA the same as averaging down?
No. DCA follows a recurring schedule regardless of price. Averaging down specifically adds capital after price has fallen and changes concentration risk.
How is weighted average price calculated?
Add the cost of every purchase, add the units acquired, then divide total cost by total units. Larger purchases therefore have more influence.
Does DCA guarantee a profit?
No. DCA changes entry timing but cannot prevent losses if the asset declines or fails. Asset quality, fees and time horizon still matter.