Calculate Average Cost
Your Average Cost
$0.00
Average Cost Per Share
Total Shares
Total Invested
$0
Number of Purchases
0
Current Position
Current Value
$0
Unrealized Gain/Loss
$0
Return
0%
Break-even price: $0.00
Dollar-Cost Averaging Strategy
Dollar-cost averaging (DCA) is an investment strategy where you invest a fixed amount at regular intervals, regardless of the stock price. This approach:
- Reduces timing risk - You buy more shares when prices are low and fewer when high
- Removes emotion - Systematic investing prevents panic selling or FOMO buying
- Lowers average cost - Over time, you may achieve a lower average than a lump sum purchase at the wrong time
- Builds discipline - Regular investing becomes a habit
Example: Investing $500/month for 6 months at varying prices ($50, $45, $55, $48, $52, $50) would give you a different average cost than investing $3,000 all at once.
