- How do I calculate my average buy price?
- Divide the total money you spent by the total number of coins you got. Example: $100 at $10 a coin buys 10 coins and $100 at $20 buys 5, so $200 bought 15 coins and the average cost is $200 ÷ 15 = $13.33. The calculator does this for any number of purchases.
- Why isn't it just the average of the prices?
- Because you bought more coins when the price was low. The simple average of $10 and $20 is $15, but you hold more coins bought at $10, so the true cost per coin is lower, $13.33 in the example. The average cost is weighted by the number of coins.
- Do fees change my average cost?
- Yes. A fee on each purchase means you get fewer coins for the money, which raises what each coin cost you. The calculator takes the fee out of every purchase and counts it in the average cost, and it includes the selling fee in the break-even price.
- What is the break-even price?
- The price you must sell at to get back exactly what you put in, after the fee on selling. It is a little higher than the average cost whenever a fee applies, because selling costs money too.
- Does buying regularly lower my average cost?
- Buying the same amount at regular intervals puts more of your money in at low prices than at high ones, which pulls the average cost below the simple average of the prices. It does not make a loss impossible: if the price keeps falling, the average cost stays above it. The DCA calculator shows how a regular plan would have done in practice.
- Is this the cost basis my tax authority uses?
- Not necessarily. Many countries require a specific method for matching sales to purchases, such as first-in first-out, rather than an average cost. This calculator shows the average cost of what you entered and is not tax advice; check the rules where you live.