What is dollar-cost averaging?
Dollar-cost averaging (DCA) means buying a fixed amount of an asset at regular intervals, or in planned steps, instead of putting all your money in at once. A trader might buy $500 of Bitcoin every week, or split a planned entry into four buys as price falls.
Because you spend the same amount each time, you buy more coins when the price is low and fewer when it is high. Your average entry price ends up weighted toward the cheaper buys. DCA does not guarantee a profit. It reduces the impact of timing a single entry badly.
This calculator works out your real average price across any number of buys.
DCA average price formula
Total invested = Sum of all buy amounts
Coins bought = Sum of (Buy amount ÷ Buy price)
Average price = Total invested ÷ Coins bought
This is a weighted average. It is not the same as adding up the buy prices and dividing by the number of buys, which ignores how many coins each buy actually got you.
Worked example: Bitcoin DCA
You buy $500 of BTC four times at different prices:
| Buy | Amount | Price | BTC bought |
|---|---|---|---|
| 1 | $500 | $60,000 | 0.00833333 |
| 2 | $500 | $55,000 | 0.00909091 |
| 3 | $500 | $50,000 | 0.01000000 |
| 4 | $500 | $58,000 | 0.00862069 |
| Total | $2,000 | 0.03604493 |
Average price = $2,000 ÷ 0.03604493 = $55,486.30
The simple average of the four prices is ($60,000 + $55,000 + $50,000 + $58,000) ÷ 4 = $55,750. Your true average is about $264 lower because the $500 bought at $50,000 gave you more coins than the buy at $60,000.
Your position breaks even (before fees) when BTC trades at $55,486.30. At $60,000, the 0.03604493 BTC would be worth about $2,162.70.
A shorter ETH case: $200 at $3,500, $200 at $3,000 and $200 at $2,500 gives $600 invested, 0.20380952 ETH and an average price of $2,943.93.
How to use this calculator
- Enter the amount spent on your first buy, in dollars or USDT.
- Enter the price you paid for that buy.
- Add a row for each further buy.
- Read the total invested, total coins and average price.
- Compare the average price with the current market price to see your unrealized gain or loss.
If you bought by quantity rather than by dollar amount, multiply quantity by price for each row to get the amount first.
DCA strategies traders use
- Time-based DCA: buy the same amount every day, week or month regardless of price. Simple and good for long-term holders.
- Price-based DCA: set buys at planned levels below the current price, for example every 5% lower. This lowers the average faster in a decline but needs a cap on total size.
- Value averaging: buy more when the portfolio is below a target growth path and less when it is above. More complex, but it adapts to price.
Whichever method you use, decide the total amount you are willing to commit before the first buy, and stick to it.
DCA with leverage: be careful
Averaging down on a leveraged futures position is very different from DCA on spot. Each add increases the position size and moves the liquidation price, and a continued fall can close the whole position. If you DCA into a perpetual, check the new liquidation price after every add with the liquidation price calculator, and size the full planned position up front with the crypto position size calculator.
Fees and the average price
Exchange trading fees reduce the coins you receive on each buy. For the most accurate average, enter the amount after fees, or the actual coins received. Over many small buys, fees can add up, so it can be cheaper to buy less often in larger amounts.
FAQ
How do I calculate my average buy price in crypto?
Add up everything you spent, add up all the coins you received, then divide total spent by total coins. That gives your weighted average price.
Is DCA better than buying all at once?
Neither is always better. A lump sum does better if price rises steadily after you buy. DCA does better if price falls or chops sideways during your buying period. DCA mainly reduces timing risk.
Does the calculator include sells?
No. It calculates the average cost of your buys. If you sold part of your position, the average price of the remaining coins stays the same under average-cost accounting.
Why is my exchange's average price different?
Exchanges may include fees, count partial fills separately, or use a different accounting method. Check the trade history and compare the coins actually received.
Can I use this for stocks or gold?
Yes. The maths is the same for any asset: amount spent divided by price gives units bought, and total spent divided by total units gives the average price.
Final note
Knowing your true average price tells you where breakeven really is. Plan the total commitment first, track every buy, and let the numbers guide decisions rather than the last candle.
Trading leveraged products carries a high risk of loss. Results are estimates; check your broker's contract specifications.