Use this dollar cost averaging calculator to determine the impact of regular, consistent investments over time on your portfolio.
Dollar Cost Averaging Calculator
This calculator helps you to determine the average cost per share of an investment, given the total investment amount, periodic investment amount, the total number of periods, and the average price per period.
How to Use
- Enter the total amount you have invested in dollars.
- Enter the amount you invest periodically.
- Enter the number of periods you have invested for.
- Enter the average price of the investment per period.
- Click on “Calculate” to see the average cost per share of your investment.
How It Calculates Results
The average cost per share is calculated by dividing the total amount invested by the total quantity of shares purchased. This takes into account the amount invested periodically over several periods at varying price points, a strategy known as Dollar Cost Averaging.
Limitations
The calculator assumes that the periodic investment and average price per period are constant. In reality, prices fluctuate, and investors may not invest the same amount each period. Therefore, the calculated average cost per share is an approximation.