What is dollar-cost averaging?
Dollar-cost averaging means investing fixed amounts over time instead of buying all at once.
Calculate dollar-cost averaging average buy price, total units, current value, and unrealized profit or loss.
Find average buy price, current value, and unrealized gain across multiple purchases.
Average buy price
Rs 64,570
Total invested: Rs 2,100
Current value: Rs 2,342
Units owned: 0.03
Unrealized P/L: Rs 241.63
A correct DCA calculation divides total invested by total units acquired. This matters because larger purchases have more weight than smaller purchases.
If current price is above average price, the position shows unrealized profit. If it is below average price, the position is currently underwater.
DCA reduces the pressure of timing one perfect entry. It works best when paired with a clear asset thesis, risk limit, and review schedule.
Do not use DCA to ignore a broken investment case. Average price is useful, but quality and risk still matter.
Dollar-cost averaging means investing fixed amounts over time instead of buying all at once.
It can lower average price when later purchases happen at lower prices, but it does not guarantee profit.
Yes. Use it for any asset where you know investment amount, purchase price, and current price.