DCA calculator — dollar-cost averaging
Model the outcome of buying a fixed amount at a regular interval, instead of a single lump-sum purchase. Useful for comparing the two entry styles on historical or hypothetical price paths. All math runs in your browser.
When DCA helps and when it doesn't
DCA reduces your exposure to single-day entry risk at the cost of lower expected return in trending markets. In a market that monotonically rises, lump-sum beats DCA every time. In a market that whipsaws, or one that falls first and then rises, DCA typically beats lump-sum because you accumulate more coins at lower prices.
The real-world argument for DCA is behavioral, not mathematical — most retail investors cannot psychologically tolerate a 30% drawdown on a lump-sum entry. DCA trades expected return for the ability to stay in the market.
What this calculator does not do
- Taxes — sold coins are typically taxable events in most jurisdictions.
- Slippage on thin order books.
- Stablecoin / fiat yield on uncommitted cash — a real DCA strategy leaves cash idle, which has an opportunity cost.