Blend multiple buys into a single weighted average entry.

Dollar-cost averaging (DCA) spreads your entries across multiple buys to reduce timing risk. But once you have multiple fills, you need a clear average buy price to manage exits and risk correctly. The weighted average price is the true entry level for your combined position.

What the average buy price is

The weighted average price is total cost divided by total quantity. It is weighted because each buy affects the average based on how much you purchased. If you include fees, the average becomes the real break-even level you need to exceed to be profitable.

Why it matters

Without the correct average, it is easy to think you are in profit when you are not. The average buy price helps you set realistic take-profit and stop-loss levels, especially when you scale into a position over time.

It also makes portfolio tracking more accurate because you can compare current price to your actual cost basis.

How to use the calculator

Add a row for each buy:

• Unit price of the fill
• Quantity purchased
• Optional fee percentage

The calculator sums total cost and quantity, then outputs the weighted average, total quantity, and total cost. Update it after every new DCA buy so your average stays current.

Example

• Buy 0.1 BTC at 42,000
• Buy 0.1 BTC at 40,000

Total cost = 8,200, total quantity = 0.2 BTC, average price = 41,000. If you add fees, the average rises slightly. That is your true break-even before any profit.

Common DCA mistakes

• Forgetting to include fees on each buy.
• Ignoring partial fills and combining them incorrectly.
• Using a simple arithmetic average instead of a weighted average.
• Failing to update the average after each new buy.

Using the average for exits

Once you know your average:

• Set realistic profit targets above the average.
• Place stops below the average if the thesis changes.
• Decide how additional buys would affect your break-even.

This keeps your trade management based on real numbers rather than guesswork.

Key takeaways

• The weighted average is your true entry price.
• Fees shift the break-even higher.
• Accurate averages improve exit planning and risk control.

Use the TradeOrbit Average Buy Price calculator after each DCA round to keep your plan aligned with reality.