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Dollar Cost Average (DCA) Formula in Excel 

Nick - Double Excel
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Investors sometimes like to use the Dollar-Cost Average (or Dollar-Cost Averaging, DCA) buying strategy when purchasing stock. DCA is just a fancy way to say that instead of buying a security all at once, you want to split up your purchases into multiple buys at different times, typically with the hope that you will ultimately have a lower average cost than if you had otherwise just purchase all the shares you desired up front. The question is, how do you calculate what your average cost per share is?
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www.doubleexcel.com/post/doll...

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9 июн 2022

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Комментарии : 22   
@TheCrochetArchitect
@TheCrochetArchitect 2 года назад
Wow! What a great video! I learned something new today! Thanks so much, Nick!
@cabmansc1973
@cabmansc1973 Год назад
Great videos! Keep them coming!
@double-excel
@double-excel Год назад
Thank you! Been busy with work for the last few months, but will be getting back to making more videos soon. Feel free to reach out with any recommendations or video requests you may have.
@tuantranquang6554
@tuantranquang6554 10 месяцев назад
Thank you very much
@rockdocdelaudio
@rockdocdelaudio Месяц назад
dude, greatest video ever
@chadlustig
@chadlustig Год назад
thanks dude
@mm0dk0ur
@mm0dk0ur 3 месяца назад
Thanks Nick, very useful, can you kindly advise what formula to use in order to calculate the DCA for each row as a cumulative average? I mean for the new DCA in each row it will need to cumulative prior cost and the cumulative shares on hand, so what formula can be used to easily calculate it, thanks in advance.
@seanm1884
@seanm1884 Месяц назад
Haven't been exposed to LAMDA yet, very cool. Seem to be handy way create a user defined function without using VBA, is that its overall purpose?
@Andrews87
@Andrews87 Год назад
Sweet. I have a question. How do u add I selling shares? Like when I buy crypto. If I buy let's say 5 times in a row and then do a sale once but not 100% of what i bought. . Then buy again. Etc... now do that 50 times... so a mix of buys and sells all at different prices and different amounts. How would.i do the average at the end? Beacuse adding up the left over by the shares doesn't seem to work out properly. I can have coins left over and my total price will be I the negative if j have made a profit.. I nonthat is not correct. Hahah thanks man.
@TheSevisgreen
@TheSevisgreen 7 месяцев назад
Bro thats a great question
@MatrixCryptoMovement
@MatrixCryptoMovement 7 месяцев назад
Certainly! Calculating the average cost of your crypto investments when you have a mix of buy and sell transactions can be tricky, but I’ll guide you through it. Here are the steps to calculate the average price: Keep Detailed Records: Maintain a record of each buy and sell transaction, including the quantity of coins, the price at which you bought or sold, and any associated fees. Calculate Total Cost and Total Coins Bought: Sum up the total amount you spent on buying crypto (including fees) and the total number of coins you acquired. This includes all your buy transactions. For example, if you bought 2 BTC at $40,000 each and 1 BTC at $50,000, your total cost would be $130,000, and the total number of coins acquired would be 3 BTC. Determine the Average Cost: Divide the total cost by the total number of coins to find the average cost per coin. In our example: Average cost = $130,000 / 3 BTC = $43,333.33 per BTC. Adjust for Sell Transactions: When you sell some coins, subtract the sold amount from the total number of coins and adjust the total cost accordingly. For instance, if you sell 0.5 BTC at $32,000, your new total cost becomes $130,000 - (0.5 BTC * $32,000) = $30,310. Calculate Profit or Loss: To determine your profit or loss, subtract the adjusted total cost from the sale price. In our example: Profit/Loss = Sale price - Adjusted total cost = $32,000 - $30,310 = $1,690. Remember that this method accounts for both buy and sell transactions, even if you have coins left over. It ensures a more accurate representation of your overall investment performance. You can use this approach for any number of buy and sell transactions, whether it’s 50 or more. If you’re using a spreadsheet or a tool, input the data for each transaction, and let the tool handle the calculations for you.
@PinkPurkle
@PinkPurkle 5 месяцев назад
And this is why i’m so glad i’m alive at this time. Thank you for helping us(me), Smart People!!! Much love and appreciation to you guys!!!
@rza4916
@rza4916 3 месяца назад
@@MatrixCryptoMovement "$130,000 - (0.5 BTC * $32,000) = $30,310" The answer to this equation is 114000, How did you get $30,310 ? Can you explain more Bro ?
@rza4916
@rza4916 3 месяца назад
@@PinkPurkle Did you get it ? I don't understand the Adjust for Sell Transactions part 🥲
@dannykhow
@dannykhow Год назад
what about when u sell some to take profit? how do u fit that into the formula?
@double-excel
@double-excel Год назад
Good question! You have to decide on what you want your cost basis to be, common methods are FIFO and average cost. No matter what method you use, when you sell your asset, simply add a new line just like a buy transaction, but with a negative value. Taking the values in the video as an example, if you sold 5 shares and we're using the FIFO method, you'd add a new line of -5 and -20, since the first 5 shares you bought we're at a price of $20.
@bukharidimensionz
@bukharidimensionz Год назад
My excel is not showing any lambda function
@double-excel
@double-excel Год назад
Hi there! LAMBDA is only available in Excel 365.
@bukharidimensionz
@bukharidimensionz Год назад
@@double-excel thank you sir
@ATIKURRH
@ATIKURRH Год назад
Hello sir I had a question?
@double-excel
@double-excel Год назад
Sure, go ahead!
@ATIKURRH
@ATIKURRH Год назад
@@double-excel Hello Sir! How are you? I don't understand how to explain the matter 1st/ Let's say the price of a share was 20$. I bought 5 shares for 20$ 2nd/ The share price fell to $15. At 15$ I bought 6.66 shares 3rd/ Then after falling again to 10$ I bought 10 shares at 10$ 4th/ Then it came down to 7$ from here too. At 7$ I bought 14.28 shares again 5th/ From here the last came down to 5$ after that I bought 25 shares for 5$ The question is, the last price has dropped to $5 from the first price I bought, now the question is how to dca between the first and last price, so that the dca price is close to the last price. Please tell me I will be very helpful! Similarly from opposite side, how to DCA between last and first price so that first price is close Now the question is that the price I bought at fast has gone down to last price now tell me a process to do BCA between fast and last so that it is close to last price t plz Just as it has gone from above to the last price, if you do DCA between the last pass and the above price, it should be close to the last price that has gone up.
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