How to Use the DCA Stock Planner
Dollar-cost averaging (DCA) spreads your investment over multiple periods, buying more shares when prices are low and fewer when prices are high. This naturally lowers your average cost in declining markets.
Enter your total investment, number of splits, starting price, and expected price change per period. The calculator shows each period's shares purchased and the cumulative average cost.
How It Works
Amount per split = Total investment ÷ Number of splits. Period N price = Starting price × (1 + change rate%)^(N-1). Average cost = Total invested ÷ Total shares.
Tips
Enter a negative price change (e.g., -5%) to see how DCA lowers your average cost during a market dip. In a rising market, DCA raises your average cost compared to lump-sum investing, so choose your strategy based on your outlook.
Frequently Asked Questions
This calculator supports 1–20 splits. In practice, 3–10 is most common. Always factor in transaction fees for each trade.
All periods have the same price, and total shares = total investment ÷ share price — a simple lump-sum result.
Only when prices decline over the period. In a steadily rising market, lump-sum investing typically outperforms DCA on average cost. DCA is most valuable for reducing timing risk.