Important Disclaimer — Not Financial Advice
The results from this calculator are for informational and educational purposes only. They are not a guarantee of actual outcomes and should not be considered financial, investment, tax, or legal advice. Always consult a qualified professional for advice tailored to your specific financial situation. See our Terms of Service and Privacy Policy for more information.
The Dollar Cost Average (DCA) calculator helps investors determine the average cost per share of their holdings when they make multiple purchases over time at varying prices. By understanding your true cost basis, you can better evaluate your portfolio's performance and make informed decisions about future buying or selling strategies.
Dollar cost averaging is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of the asset's price, which can reduce the impact of market volatility by buying more shares when prices are low and fewer when prices are high.
Dollar cost averaging helps reduce the risk of investing a large lump sum at a market peak.
This strategy relies on consistent, periodic investments rather than trying to time the market.
Dollar cost averaging can lead to a lower average cost per share over time in volatile markets.
It is most effective for long-term, disciplined investors who can maintain regular contributions.
Average Cost = Total Amount Invested / Total Number of Shares Purchased
This formula divides the total capital you have deployed into an asset by the aggregate number of shares acquired, revealing the effective price you paid per share across all transactions.
Investors often use this tool when they follow a disciplined strategy of buying a fixed dollar amount of a stock or ETF at regular intervals, regardless of market fluctuations. For instance, if you invest $500 monthly into a volatile tech stock, your purchase price will change every month due to market swings. This calculator allows you to aggregate these disparate transactions to see your weighted average entry point. It is particularly useful for long-term investors aiming to mitigate the risk of investing a large lump sum at a market peak.
If you bought 10 shares at $50 and later bought 20 shares at $40, your total investment is $1,300 for 30 shares. Using the calculator, you find your average cost basis is $43.33 per share.
These authoritative sources inform our calculator methodology and ensure accuracy.
Written by Qasem Mohammed
Financial tools developer and founder of QFINHUB. All calculators are built with industry-standard formulas and reviewed for accuracy. Content is for educational purposes only — always consult a qualified financial professional for decisions about your specific situation.
Last updated: June 25, 2026 ·About QFINHUB · Editorial Policy
Last reviewed by Qasem Mohammed — June 25, 2026
AI & Software Engineer, Founder & Lead Developer at QFINHUB · Editorial Policy
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Total Shares
119.95
Average Cost Per Share
$50.02
Current Value
$5,997.41
Gain / Loss
-$2.59