DCA Calculator
Plan your dollar cost averaging strategy and track your weighted average entry price across multiple buy orders.
Calculadora DCA
Calcula tu precio promedio de entrada
Average Price
Calculate your weighted average entry price across multiple buys to understand your true cost basis.
Break Even
Know exactly at what price you need to sell to break even after multiple purchases at different prices.
P&L Preview
See your potential profit or loss at any target price based on your total DCA position.
What is Dollar Cost Averaging (DCA)?
Dollar Cost Averaging (DCA) is an investment strategy where you divide your total investment amount into periodic purchases of a target asset. Instead of buying a large amount at once, you spread your purchases over time — regardless of the asset's current price. This approach reduces the impact of volatility on your overall position.
For crypto traders, DCA is especially useful during bear markets or consolidation phases. When prices drop, your fixed-dollar purchases buy more units. When prices rise, you buy fewer. Over time, this averages your entry price and reduces the risk of entering at a local top.
DCA is one of the simplest yet most effective risk management techniques. It removes the emotional pressure of trying to "time the market" and replaces it with a disciplined, systematic approach that has been proven effective across traditional and crypto markets alike.
How DCA Works: Step by Step
1. Choose Your Asset
Select the cryptocurrency you want to accumulate. DCA works best with assets you believe in long-term — like BTC, ETH, or SOL.
2. Set Your Budget & Frequency
Decide how much you want to invest per period (e.g., $100/week or $500/month). The frequency can be daily, weekly, bi-weekly, or monthly.
3. Buy Regardless of Price
Execute your purchases at your set schedule. Do not skip buys because the price "seems high" — consistency is the core principle of DCA.
4. Track Your Average Entry
Use this calculator to track your weighted average entry price. As you add more buy entries, you can see exactly how your cost basis changes.
When to Use DCA vs Lump Sum
DCA is not always the optimal strategy. Research shows that lump sum investing outperforms DCA about two-thirds of the time in rising markets. However, DCA significantly outperforms in volatile or declining markets — which is exactly the environment crypto traders face.
Best Scenarios for DCA:
- Bear markets: Accumulate at lower prices without catching the exact bottom
- High volatility: Reduce the impact of price swings on your average entry
- New to crypto: Start investing without the stress of timing the market
- Regular income: Invest a portion of each paycheck systematically
- Long-term hold: Building a position over months or years
DCA Formula Explained
The weighted average price in DCA is calculated by dividing your total cost by the total number of units acquired:
For example, if you buy 0.01 BTC at $60,000 and 0.015 BTC at $40,000, your average price is: ($600 + $600) / 0.025 = $48,000 — significantly better than the $60,000 first entry.
DCA Tips for Crypto Traders
Stick to Your Schedule
The biggest mistake in DCA is skipping buys when prices are falling. Those are often the most valuable purchases.
Use Limit Orders
Place limit orders slightly below market price to reduce slippage and save on fees over many purchases.
Track Everything
Keep a record of every purchase. Use this calculator to monitor your average entry and make informed exit decisions.
Combine with Risk Management
DCA builds your spot position, but always use our position size calculator for leveraged trades to manage risk.
Frequently Asked Questions About DCA
What is the best DCA frequency for crypto?▼
Is DCA better than buying all at once?▼
How long should I DCA into crypto?▼
Can I DCA into futures positions?▼
How do I calculate my break-even price after DCA?▼
Related Tools
DCA calculations are for educational purposes only. Past performance does not guarantee future results. Always do your own research before investing.