Dollar Cost Averaging
Calculate Dollar Cost Averaging instantly with the exact formula and a worked example.
Dollar Cost Averaging
Amount of each purchase$
Price at 1st purchase$
Price at 2nd purchase$
Price at 3rd purchase$
Price at 4th purchase (current)$
Average purchase price
95.36$
Shares bought
419.44pcs
Invested
40000$
Arithmetic mean price
97.5$
Value at current price
37750$
Return
-5.6%
More about: Dollar Cost Averaging
What it calculates
The “Dollar Cost Averaging” calculator computes Average purchase price in $ from 5 parameters: amount of each purchase ($), price at 1st purchase ($), price at 2nd purchase ($), price at 3rd purchase ($), price at 4th purchase (current) ($).
Used by investors to estimate returns, project savings, and analyze a portfolio.
Example calculation
With parameters Amount of each purchase = 10,000 $, Price at 1st purchase = 100 $, Price at 2nd purchase = 80 $, Price at 3rd purchase = 120 $, Price at 4th purchase (current) = 90 $ the result is 95.36 $.
How to use
- Enter amount of each purchase, price at 1st purchase, price at 2nd purchase, price at 3rd purchase and price at 4th purchase (current) — each field above is adjustable with a slider.
- Average purchase price ($) is calculated automatically as you type.
- Check the worked example below to see the formula applied to real numbers.
- Copy the result or bookmark this calculator.
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FAQ
What is compound interest?
Compound interest means you earn returns not only on your original principal but also on previously earned interest. Formula: A = P · (1 + r/n)^(n·t). Over long periods this produces exponential growth.
How much do regular contributions matter?
A lot. Adding a fixed amount every month and reinvesting earnings dramatically increases the final value, especially over 20–30 years, because each contribution compounds for the remaining term.
What is the Rule of 72?
A quick estimate for doubling time: years ≈ 72 / annual return %. At 8% your money doubles in about 9 years; at 12%, in about 6 years.
What return rate should I assume?
Historically the S&P 500 has returned about 10% per year before inflation (around 7% after). Use a conservative figure for planning and remember that past performance does not guarantee future results.
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