A DCA calculator divides each scheduled contribution by the market price at that date, adds the BTC purchased and compares total value with total invested. A fair evaluation tests many start dates, includes fees and measures drawdown, not only final return.
Transparent formula
BTC purchased each period = contribution ÷ price; average cost = total invested ÷ total BTC
Worked example
Investing $500 monthly for 12 months creates $6,000 total capital. Each month buys a different BTC amount. The final return depends on the full price path, not only the first and last price.
Use this sequence
- Choose contribution and frequency.
- Include realistic fees.
- Test multiple start dates.
- Measure drawdown and time underwater.
Common mistakes
- Selecting the best historical start date.
- Ignoring custody and tax considerations.
- Assuming historical return will repeat.
Verify next
Frequently asked questions
Does DCA guarantee profit?
No. It changes entry timing and cost basis but does not remove asset risk.
Is weekly better than monthly?
It depends on fees, cash flow and the price path. Test both under the same assumptions.
What is time underwater?
It is the time an investment remains below its previous value or cost basis.
This page provides calculation and research frameworks, not investment, legal or tax advice.
