Dollar cost averaging means investing a fixed amount on a regular schedule rather than committing everything on one day. Because the amount is fixed, the expensive periods buy fewer coins and the cheap ones buy more, so the average cost ends up below the average price.
The position is worth today
$1,499.27
0.033317 coins bought for $1,200 in 6 purchases
Up
$299.27
Average cost
$36,017.48
Fees paid
$6.00
Price today
$45,000.00
Money in against value now
Invested$1,200
Gain$299
Buying at a fixed amount each time means the expensive months buy fewer coins and the cheap months buy more, which is what pulls the average cost below the average price.
What each purchase bought
When
Spent
Fee
Coins bought
Coins so far
Average cost
January
$200
$1.00
0.004738
0.004738
$42,211.06
February
$200
$1.00
0.005528
0.010266
$38,964.05
March
$200
$1.00
0.007107
0.017373
$34,536.32
April
$200
$1.00
0.006419
0.023792
$33,624.22
May
$200
$1.00
0.005103
0.028895
$34,608.14
June
$200
$1.00
0.004422
0.033317
$36,017.48
The average cost is the running cost basis: it moves with every purchase, and it is the number the price has to beat for the position to break even.
Against one purchase on the first date
Measure
Buying monthly
One lump sum
Coins held
0.033317
0.028429
Value today
$1,499
$1,279
Profit or loss
$299
$79
Return
24.94%
6.61%
Spreading the purchases came out $220 ahead of buying everything on the first date, because the later purchases were made below that first price.
If the price ends somewhere else
End price
Buying monthly
One lump sum
DCA ahead by
-50% → $22,500
$750
$640
+$110
-25% → $33,750
$1,124
$959
+$165
0% → $45,000
$1,499
$1,279
+$220
+25% → $56,250
$1,874
$1,599
+$275
+50% → $67,500
$2,249
$1,919
+$330
+100% → $90,000
$2,999
$2,559
+$440
Dollar cost averaging does not change where the price ends up, only the average price you paid to get there. When a market only rises, buying early wins; when it falls and recovers, spreading the buys usually does.
6 purchases of $200 each put $1,200 to work at an average cost of $36,017.48. A fixed amount per period buys fewer coins when the price is high and more when it is low, which is a discipline about behaviour as much as arithmetic: it removes the decision about whether today is a good day to buy.
This calculator takes every purchase you have made, charges the exchange fee on each one, and reports the coins held, the average cost, the value today and the return, along with a comparison against putting the same total in on the first date.
How this crypto dca calculator works
How the average cost is built
Each purchase buys (amount − fee) ÷ price coins. Adding those up gives the position, and dividing the total money spent by the total coins gives the average cost. Fees push the average cost up, which is why a high-fee venue needs a bigger price move to break even.
A useful check: the average cost of a series of equal purchases is below the arithmetic average of the prices, and the gap widens with volatility. The table of purchases shows the running average after each buy.
What DCA does and does not do
It removes the decision about whether today is a good day to buy, which is a behavioural benefit more than a mathematical one. It also reduces the risk of committing all your money just before a fall, at the cost of buying less of the way up.
It does not make a bad asset good, and it does not change where the price ends up. If the price only rises, buying early with a lump sum wins; if it falls and recovers, spreading the purchases usually wins. The comparison table shows both outcomes at several end prices.
What is modelled
The fee on each purchase, the coins bought, the running average cost, the value at the price you enter and the alternative of one purchase on the first date with the same total money.
Not modelled: tax on sales (crypto is treated as property in the United States, so a sale realises a gain or loss), staking rewards, network and withdrawal fees charged in coin rather than cash, and the exchange spread when the order is filled.
Worked examples
Each example below was run through the calculator on this page when the site was built, so the numbers match what you see when you enter the same inputs.
$200 a month through a volatile six months
Your purchases
6 items
Fee on each buy
0.5%
Price today
$45,000.00
The position is worth today
$1,499.27
0.033317 coins bought for $1,200 in 6 purchases
Up
$299.27
Average cost
$36,017.48
Fees paid
$6.00
Price today
$45,000.00
The March purchase at $28,000 buys nearly twice as many coins as the January one at $42,000, which is what drags the average cost below the average price.
A dip that is still below the average cost
Your purchases
3 items
Fee on each buy
0.5%
Price today
$42,000.00
The position is worth today
$1,305.94
0.031094 coins bought for $1,500 in 3 purchases
Down
-$194.06
Average cost
$48,241.21
Fees paid
$7.50
Price today
$42,000.00
The position is worth more than the money put in even though the price today is below the first purchase, because most of the coins were bought lower down.
DCA in a market that only rose
Your purchases
4 items
Fee on each buy
0.5%
Price today
$34,000.00
The position is worth today
$1,341.62
0.039459 coins bought for $1,000 in 4 purchases
Up
$341.62
Average cost
$25,342.47
Fees paid
$5.00
Price today
$34,000.00
A steadily rising market is the case where spreading the purchases costs money: the lump sum on the first date bought more coins at the lowest price.
Frequently asked questions
What is dollar cost averaging?+
Investing a fixed amount on a fixed schedule regardless of the price. It is a rule about behaviour as much as arithmetic: the decision about whether today is a good day to buy is removed, and the schedule makes the investing automatic.
Does DCA always beat a lump sum?+
No. If the price rises steadily, buying earlier with the whole amount wins, because the money was invested at a lower price for longer. DCA wins when the price falls and later recovers, because the cheaper purchases reduce the average cost. The comparison table shows both cases at several end prices.
How is the average cost calculated?+
Total money spent divided by total coins held. Each purchase buys (amount − fee) ÷ price, and the running average is the cumulative spend divided by the cumulative coins. Note that the average cost is not the average of the prices: equal amounts at two prices give a lower cost than the midpoint.
How often should I buy?+
Research on the question suggests the schedule matters less than the habit, as long as it is consistent. Weekly, monthly and quarterly schedules produce very similar average costs over years; what changes the result far more is the fee per purchase and whether the buying continues through a fall.
Are crypto DCA gains taxed?+
Each purchase sets a cost basis for the coins bought on that date, and a sale realises a gain or loss based on that basis, normally on a first-in, first-out method unless you specify otherwise. In the United States crypto is treated as property, so short-term gains follow ordinary income rates and long-term gains qualify for the lower rates. This calculator does not compute tax.
What if my exchange charges a flat fee per purchase?+
A flat fee hurts small purchases more than a percentage fee does, because it is the same cost on a smaller amount. If a purchase costs a fixed $2 and you buy $20 at a time, you are paying 10% — the schedule is too frequent for the fee structure, and buying less often is the fix.
Does this calculator handle selling?+
No: it values what you hold at the price you enter. For the profit or loss on a sale, including the fee on the way out, use the crypto profit calculator with your average cost from this page.
Assumptions and sources
Average cost and DCA arithmetic: coins per purchase = (amount − fee) ÷ price, average cost = total spent ÷ total coins, and the lump-sum comparison invests the same total on the first date at the same fee rate.
This is not investment advice. DCA changes when money is invested, not whether an asset is suitable, and crypto assets can lose most of their value. The calculator works only on the prices you enter.
Tax treatment of crypto as property and the one-year short-term/long-term distinction: IRS guidance on digital assets. No tax is computed here, and nothing on this page is tax advice.
Not modelled: the exchange spread on each fill, staking or yield rewards, network and withdrawal fees paid in coin, and the order of the coins sold when only part of a position is realised.
Last reviewed 2026-09-14. This page is an estimate tool, not financial, tax or legal advice.Read the full disclaimer.