Crypto DCA Calculator

DCA stands for dollar-cost averaging. You invest the same amount at regular intervals, such as every week or month, whatever the price is that day. In India it is often called rupee-cost averaging, and it is how a systematic investment plan works.

Divide the total you invested by the total units you bought. Take four buys of ₹10,000 at ₹30,00,000, ₹20,00,000, ₹25,00,000 and ₹40,00,000. They buy 0.01483333 units for ₹40,000, an average of ₹26,96,629.21 per unit. That is lower than the plain average of the four prices, ₹28,75,000, because the same amount bought more units at the lower prices.

It depends on what the price does after you start. If it rises steadily, a lump sum at the start does better, because all the money is in from the first day. If it falls or swings around, spreading the buys gives a lower average cost. In the example above, at a current price of ₹35,00,000, DCA is worth ₹51,916.67 and a lump sum at the first price would be worth ₹46,666.67. Neither approach guarantees a profit.

This calculator is for buying a fixed amount each time, so you enter one amount and the price at each buy. The Average Buy Price Calculator is for buys of different sizes, where you enter a price and a quantity for each one. To project a plan into the future, use the Crypto Investment Calculator.

Buying is not taxed, however many times you buy. Tax arises when you sell: the profit is taxed at a flat 30%, plus cess, and 1% TDS is taken from the sale value. Use the India Crypto Tax Calculator to work out the tax on a sale.

No. Exchange fees on each buy are left out, so your real average cost would be slightly higher. If you pay a fee on every purchase, many small buys can cost more in fees than a few large ones.