DCA Calculator
See how dollar cost averaging grows your portfolio over time.
Total Invested
$2,400
Portfolio Value
$4,673
Total Gain
+$2,273
ROI
+94.7%
Hypothetical returns. Actual results will vary. Past performance does not guarantee future results.
What is dollar cost averaging?
Dollar cost averaging (DCA) means investing a fixed amount at regular intervals regardless of price. Instead of timing the market with one large purchase, you spread your investment over time. When prices are low, you buy more units. When prices are high, you buy fewer. Over time, this averages out your entry price.
Why DCA works
DCA removes emotion from investing. You don't need to decide if "now is a good time to buy." You just invest consistently. This is especially effective in volatile markets like crypto, where timing the bottom is nearly impossible.
DCA vs lump sum
In a market that trends up over time, lump sum investing technically outperforms DCA on average. But DCA reduces regret risk and volatility exposure. For most people, DCA is the safer and more disciplined approach.
Example
$100/month into BTC for 24 months at 5% monthly return: $2,400 invested, portfolio value ~$5,280. That is the power of compounding plus consistent buying.
Get better entries for your DCA strategy
See how Axion Algo's buy/sell signals work with proper risk management.