Project the outcome of a monthly investment plan into Bitcoin or any crypto asset. Adjust return assumptions to stress-test your accumulation strategy.
Dollar cost averaging is not a trading strategy — it is a saving strategy with a structural advantage. When you invest a fixed dollar amount at regular intervals, price volatility works in your favor rather than against you. At lower prices, your fixed dollar buys more units. At higher prices, it buys fewer. Over time, the average purchase price is mathematically lower than the average market price over the same period.
The formula used here is the future value of an ordinary annuity: each monthly contribution earns compound returns for the remaining duration. A $500 investment in month one compounds for the full 60 months. A $500 investment in month 60 earns nothing additional. The total depends on the return rate applied to each contribution over its specific holding period.
DCA's structural advantage is largest during sustained price declines. When Bitcoin fell from $69,000 in November 2021 to $16,000 in November 2022 — a 77% decline over 12 months — a consistent $500/month buyer accumulated roughly 3× more BTC in the bottom half of that decline than at the peak. Their average purchase price was dramatically lower than the market's average price during that period.
The failure mode of DCA is stopping during drawdowns — precisely when the advantage is greatest. Most people who “DCA Bitcoin” do not actually maintain their commitment when prices drop 50% and media coverage turns catastrophic. Those who do have historically been rewarded when markets recovered.
The projected value is extremely sensitive to the assumed annual return. At 10% annual return over 5 years, $500/month grows to roughly $38,000. At 30% return, the same investment grows to $53,000. At 50% return, it reaches $84,000. The difference between realistic and optimistic assumptions at 10 years is not incremental — it is orders of magnitude.
Use this calculator to understand the range of outcomes, not to predict a specific result. A 10% scenario, a 20% scenario, and a 35% scenario gives you a realistic bracket for planning. Never build financial plans around the top of that range.
Understanding DCA outcomes across different return assumptions gives you a basis for evaluating whether active trading strategies are worth the effort and risk they introduce. If a simple DCA plan at 15% annual growth produces comparable or better outcomes to an active strategy with significant drawdown risk, the case for active trading needs to be compelling.
Compare DCA to your active strategy with a backtest →