Value Averaging
Powerful, free, and easy to use
Value Averaging Calculator
Calculate investment amounts using value averaging strategy, which adjusts investment amounts to reach a target portfolio value over time.
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About Value Averaging
Value averaging is an investment strategy that adjusts the amount invested each period to reach a predetermined target portfolio value. Unlike dollar-cost averaging, which invests a fixed amount, value averaging invests more when prices are low and less when prices are high.
Advantages:
- • Buys more shares when prices are low
- • Reduces market timing risk
- • Disciplined investment approach
Considerations:
- • Requires more cash flow
- • May trigger more taxable events
- • Not suitable for all investors
About the Value Averaging Calculator
The value averaging calculator determines how much to invest each period so your portfolio grows by a fixed dollar amount. Unlike DCA, value averaging adjusts contribution sizes based on recent performance, buying more when prices drop and less when they rise. It is a disciplined approach for investors who want tighter control over portfolio growth targets.
How to Use
Enter your desired portfolio growth per period, such as an increase of $500 each month. Provide your starting balance and expected rate of return. The calculator will generate a schedule showing the exact amount to invest or withdraw each period to keep your portfolio on the target growth path. Compare these variable contributions to a standard DCA approach to see which strategy better fits your cash flow and risk tolerance.