Skip to main content

learn.howToCalculate

learn.whatIsHeading

Dollar-cost averaging invests a fixed amount regularly, reducing the impact of market volatility. By buying more shares when prices are low and fewer when high, it lowers the average cost per share.

Формула

Average cost per share = Total invested / Total shares acquired

Водич корак по корак

  1. 1Enter investment amount, time period, and price history
  2. 2Calculate shares purchased each period at current price
  3. 3Sum total spent and shares to find average cost

Worked Examples

Инпут
Monthly: $500, Prices: $50, $40, $60
Резултат
Avg cost ≈ $49.17/share
vs simple average of $50

Common Mistakes to Avoid

  • Confusing with buying a lump sum at average price
  • Ignoring fees and slippage

Подешавања