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How the DCA calculator works
Choose a coin, how much you invest each period, how often, and how far back to test. The calculator uses daily historical prices from CoinGecko to simulate each purchase, then shows your total invested, coins accumulated, average cost and current value.
Is DCA better than investing a lump sum?
It depends on the market. DCA reduces timing risk and emotional decisions, while a lump sum can outperform in a steadily rising market. Past results do not guarantee future returns.
What dollar-cost averaging is
Dollar-cost averaging (DCA) means investing a fixed amount on a regular schedule, such as $100 every week, no matter what the price is. When prices are low your money buys more coins, and when they are high it buys fewer. Over time this smooths out your average cost and removes the pressure of trying to time the market.
A simple example
Imagine investing $100 a month for three months. In month one the price is $50,000, so you buy 0.002 BTC. In month two it falls to $40,000 and you buy 0.0025 BTC. In month three it is back to $50,000 and you buy another 0.002 BTC. You have invested $300 and hold 0.0065 BTC, an average cost of about $46,150 per coin, below the $50,000 you would have paid with a single purchase at the start.
DCA vs lump sum
Historically, investing a lump sum straight away has often beaten DCA in markets that rise over time, simply because more money is invested for longer. DCA's advantage is behavioral: it lowers the risk of putting everything in at a peak and makes a volatile asset easier to stick with. Many investors use DCA for new savings and keep a long time horizon.
Tips for a DCA plan
- Pick an amount you can keep investing through a downturn; stopping during a crash undoes much of the benefit.
- Check fees on recurring buys. Small, frequent purchases can carry high fees on some apps, so compare options on our exchange reviews.
- Decide in advance how long you will keep going and when you will review the plan.
- Past performance in a backtest does not predict future returns.
Results are for education and planning only, not financial advice.