The mechanics of the calculation
DCA buys a fixed amount each period, so the same money buys more SOL when the price is low and less when it is high — spreading the average cost across periods.
Computationally you roll through each period: convert the fixed amount into SOL at that period price and add them up, then multiply the total by the final price.
Formulas
amount per period × number of periodsΣ(amount per period ÷ price at that period)total invested ÷ coins heldcoins held × final price(final value − total invested) ÷ total invested × 100%Worked example (recompute it yourself)
Invest 100 USDT weekly for 52 weeks (5,200 USDT total), with the SOL price rising linearly from 80 to 140:
Accumulated coins ≈ 48.55051646 SOL, so average cost = 5,200 ÷ 48.5505 ≈ 107.10 USDT.
Final value = 48.5505 × 140 ≈ 6,797.07 USDT, a return of about +30.71%.
The average cost of 107.10 sits below the arithmetic mean price of 110, because lower prices bought more coins.
Note: this page uses a linear price model
The example assumes the price moves evenly between 80 and 140. It demonstrates the bookkeeping of DCA and is not a return forecast.
To see how SOL DCA actually played out, use the DCA backtest, which uses real daily closes.
FAQ
Why is my average cost below the average price?
Because the amount invested is fixed: cheaper periods buy more SOL, tilting the weighted cost toward the lower prices. In the example the average cost is about 107.10 versus a mean price of 110.
Does DCA on SOL guarantee a profit?
No. If SOL falls over the long run, DCA loses money too. It smooths the cost curve; it does not remove downside risk.
How does the linear model differ from a backtest?
The linear model interpolates evenly between two prices to explain the bookkeeping. A backtest uses actual daily closes, so the real path of highs and lows changes the buy points.