DCA Calculator

What is Dollar Cost Averaging (DCA)?

Dollar Cost Averaging (DCA) is an investment strategy where you invest a fixed amount at regular intervals regardless of the asset's price. Instead of trying to time the market with a lump sum, DCA spreads your purchases over time. This reduces the impact of volatility and lowers the risk of buying at a peak. It's one of the most popular strategies for long-term crypto investors.

How does DCA work?

With DCA, you invest the same dollar amount on a fixed schedule (e.g., $100 every month). When prices are low, you buy more tokens. When prices are high, you buy fewer tokens. Over time, this averages out your purchase price, often resulting in a lower average cost than the average market price.

DCA vs Lump Sum: which is better?

In a consistently rising market, lump sum investing typically outperforms DCA because your money is invested earlier. However, DCA reduces risk in volatile or declining markets. Studies show lump sum wins about 66% of the time historically, but DCA provides psychological comfort and protects against buying at the worst possible time.

What are the price path simulations?

Linear: price moves straight from initial to final price. Dip & Recovery: price drops 50% midway then recovers (DCA often wins here). Pump & Correction: price doubles midway then corrects down (lump sum often wins here). These help you understand how DCA performs under different market conditions.

What is the ideal DCA frequency?

Weekly and monthly are the most common DCA frequencies. Weekly DCA provides slightly better average prices due to more purchase points, but the difference is usually small. Monthly is simpler to manage. The key is consistency — the frequency matters less than sticking to the plan.

Example DCA Scenarios

• $100/month into BTC for 12 months (price: $30K → $60K, linear) → DCA average cost lower than $45K midpoint
• $50/week into ETH for 52 weeks with dip & recovery → DCA accumulates more tokens during dip
• $200/month for 24 months in a pump & correction → Lump sum may outperform DCA if bought at initial price