Cost Average Calculator

Cost Average Calculator

Currency:

Calculator
Scenario Analysis
Comparison

Investment Parameters

Market Parameters

Investment Summary

Total Investment Period:
Total Amount Invested:
Total Fees Paid:
Average Cost per Period:

Asset Acquisition

Total Units Acquired:
Average Cost per Unit:
Final Asset Price:

Portfolio Value

Final Portfolio Value:
Total Return:
Annualized Return:
Inflation-Adjusted Return:

Scenario Analysis

Compare how different periodic investment amounts and frequencies affect your results.

Cost Averaging vs. Lump Sum

Compare dollar cost averaging with investing the entire amount upfront.

Dollar Cost Averaging

Total Invested:
Final Value:
Total Return:
Annualized Return:

Lump Sum Investment

Total Invested:
Final Value:
Total Return:
Annualized Return:

Comparison

Difference in Final Value:
Difference in Annualized Return:
Preferred Strategy:
Volatility Reduction:

Calculation Formulas

1. Total Investment
Total Investment = Initial Investment + (Periodic Investment × Number of Periods)
Sum of all investments made over the investment period
2. Total Units Acquired
Total Units = Σ (Investment Amount at each period / Price at that period)
Sum of all units purchased at each investment period
3. Average Cost Per Unit
Average Cost = Total Investment / Total Units Acquired
The average price paid per unit over all investments
4. Portfolio Value
Portfolio Value = Total Units Acquired × Current Price
Current worth of the investment based on current price
5. Total Return
Total Return = Portfolio Value - Total Investment
Total Return % = (Total Return / Total Investment) × 100
Absolute and percentage gain/loss on the investment
6. Annualized Return
Annualized Return = [(1 + Total Return %) ^ (1 / Investment Years)] - 1
Compounded annual growth rate (CAGR) of the investment
7. Inflation-Adjusted Return
Inflation-Adjusted Return = [(1 + Annualized Return) / (1 + Inflation Rate)] - 1
Real return after accounting for inflation
8. Price Simulation
Daily Price Change = (1 + Daily Trend) × (1 + Random Volatility)
Daily Trend = (1 + Annual Trend) ^ (1/365) - 1
Price follows long-term trend with random volatility
9. Volatility Calculation
Standard Deviation = √[Σ(Return - Average Return)² / Number of Periods]
Measure of investment risk based on periodic returns

🧮 Cost Average Calculator – The smart way to understand investing and make better decisions

What is Cost Average Calculator?

Cost Average Calculator is an investment analysis tool that helps you understand how a regular or lump sum investment strategy over time will work for you. This tool is specifically designed for investors who want to understand:

  • What is my average investment value?
  • How much return can I expect?
  • Which strategy is better if I invest every month or if I invest the entire amount at once?

💡 What does this tool do?

✅ Average Cost Calculation:

Combines your total investment with the units to show how much you paid on average.

✅ Returns & Inflation Adjusted Return:

This tool not only shows the total profit/loss, but also shows the real return by removing the effect of inflation.

✅ Lump Sum vs Periodic Investment Comparison:
What is more profitable in the long term — regular investments or lump sum investments? This tool provides a comparative analysis of both strategies, allowing you to make informed investment decisions based on data.

✅ Interactive Charts:
Chart the asset price, portfolio value, and investment trends over time.

✅ Scenario Analysis:
You can also analyze how different investment amounts and frequencies will make a difference.

✅ Multi-Currency Support:
₹ Rupee, $ Dollar, € Euro, £ Pound, and ¥ Yen — you can calculate in the currency of your choice.

🔧 How to use this tool?

  • Enter the Initial Investment and Periodic Investment amounts.
  • Select how frequently and for how long you will invest (e.g. monthly, quarterly, etc.)
  • Enter market data like Asset Price, Fees, Inflation etc.
  • Click on the “Calculate” button.
  • View the results in charts and cards.

If you want, you can also analyze different options by changing the investment amount and time by going to the “Scenario Analysis” tab.

🧠 Who is this tool useful for?

  • Stock market investors
  • SIP or mutual fund investors
  • Crypto investors
  • Financial planners
  • It is also very useful for students and learners

🤔 Why use it?

✔ It is a sign of wisdom to decide the strategy beforehand for successful investment.

✔ Gives accurate estimate of returns
✔ Emotional decisions can be avoided
✔ Takes into account real factors like inflation
✔ Empowers you to make data-based decisions