Dollar Cost Averaging
Analyze how regular, fixed-dollar investments can lower your average cost per share and smooth out market volatility.
- NOT FINANCIAL ADVICE
- EDUCATIONAL USE
- ESTIMATES ONLY
- MODELING VOLATILITY IMPACT
$
The amount you invest at each interval.
How many times you will invest (e.g., 12 months).
$
%
Used to simulate price fluctuations during the period.
Average Cost Per Share
$0.00
Total Invested
$0
Total Shares Owned
Market Value (Final Price)
$0
What is Dollar Cost Averaging?
Dollar cost averaging (DCA) is an investment strategy in which an investor divides the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase.
The purchases occur regardless of the asset's price and at regular intervals. In effect, this strategy removes much of the detailed work of attempting to time the market in order to make purchases of equities at the best prices.