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Dollar-CostAveraging
An investment strategy where you invest a fixed amount at regular intervals, regardless of market conditions. This reduces the impact of volatility on your overall purchase.
DCA Simulator
$500
24 months
Progress0 / 24 months
DCA Strategy
Total Invested$0
Shares Owned0.00
Avg Cost/Share$0.00
Portfolio Value$0
vs. Lump Sum
If Invested All at Start$12,000
Difference-$12,000
Purchase Points
Average Cost
Market Price
How DCA Works
01
Set Amount
Choose a fixed amount to invest regularly, like $500 per month.
02
Stick to Schedule
Invest on the same day each period, regardless of price movements.
03
Buy More When Low
Your fixed amount buys more shares when prices drop.
04
Buy Less When High
Your fixed amount buys fewer shares when prices rise, avoiding overpaying.
Pros and Cons
Advantages
- +Removes emotion from investing decisions
- +Reduces impact of market volatility
- +No need to time the market
- +Builds disciplined investing habits
- +Lowers average cost in declining markets
Considerations
- -May underperform lump sum in rising markets
- -Transaction fees can add up (use commission-free platforms)
- -Requires discipline to maintain during downturns
- -Does not guarantee profits or protect against losses