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Cost-Average Effect
Simulates a savings plan with the same amount each month and changing prices and shows the return achieved.
Type values, assign them with the value keys and press "Solve". It is the same financial calculator as under "Calculator" in the menu above.
Examples for this calculator
Each example is a story with explanation and a "what you learn" takeaway.
Formula
Shares = Σ(rate/price_t); final value = shares · closing price
How the formula works
With a fixed rate you automatically buy more shares when the price is low, fewer when it is high. The calculator sums the shares bought each month (rate/price) and values them at the closing price; from that the return follows. This is how a profit emerges even in a sideways market.
When prices are low, more shares are bought – the average cost falls.
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