When you spend the same amount on several purchases, the number of units changes with the price. The average amount paid per unit must use the actual units acquired. Simply averaging the market prices gives a different answer.

The DCA calculator accepts a sequence you supply. It does not fetch historical prices or claim to backtest a strategy.

Follow the cash and the units

Consider two purchases with a total budget of 120 each. At a price of 60, the first buys two units. At a price of 40, the second buys three. Total spending is 240 and total holdings are five units, so the average acquisition cost is 48 per unit. The simple average of 60 and 40 is 50; it ignores how many units were acquired at each price.

Decide where fees come from

Our model deducts the percentage purchase fee from each budget. With a 1% fee, each 120 budget leaves 118.80 to buy units. The two purchases acquire 1.98 and 2.97 units, or 4.95 in total. Cash spending remains 240, and all-in average cost becomes approximately 48.4848.

If your exchange instead charges a fee on top, or takes it in another asset, translate the cash flows before using this model. A fixed minimum fee can also change a small purchase substantially; this tool currently models percentage fees only.

Valuation is a separate assumption

At a later valuation price of 50, those 4.95 units are worth 247.50 before an exit fee. With a 1% hypothetical selling fee, net proceeds would be 245.025 before rounding: approximately 5.03 above the original 240 spending. A valuation price of 40 instead produces a loss. Lower average entry does not ensure profit.

What the sequence cannot tell you

Equal-budget purchases are commonly called dollar-cost averaging when they occur at regular intervals. This calculator assumes that schedule rather than validating dates. It does not include dividends, interest on uninvested cash, tax lots or changes in exchange rates. The result is a scenario based on your inputs, not a recommendation to buy an asset or evidence of future performance.

For unequal purchase quantities, use the weighted average purchase price calculator. For a single completed spot trade, use the stock and crypto profit calculator.

Reference

Investor.gov defines dollar-cost averaging. The numerical sequence above is an invented teaching example.

Published by AllMarkets. AI-assisted research and implementation; examples are illustrative. No professional financial review is claimed. Sources checked 14 October 2026.