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Dollar Cost Averaging Calculator
See how consistent monthly investing compounds over time versus a one-time lump sum.
📝 Investment Details
$
$
20yrs
8%
S&P 500 historical ≈ 10% nominal, ~7% real after inflation.
📊 Growth Projection
FINAL PORTFOLIO VALUE
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From consistent monthly investing
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Total Contributed
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Investment Gains
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Money Multiplier
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Lump Sum Only Value
💡 Key InsightEnter your details to see the power of compounding.
How DCA Growth is Calculated
Monthly Rate r = Annual Return ÷ 12
n = Years × 12 months
Lump Sum FV = Principal × (1+r)ⁿ
DCA FV = Monthly × [(1+r)ⁿ−1] ÷ r × (1+r)
Total FV = Lump Sum FV + DCA FV
n = Years × 12 months
Lump Sum FV = Principal × (1+r)ⁿ
DCA FV = Monthly × [(1+r)ⁿ−1] ÷ r × (1+r)
Total FV = Lump Sum FV + DCA FV
Frequently Asked Questions
What is dollar cost averaging? ▼
DCA is investing a fixed amount at regular intervals regardless of market price. When prices are low you buy more shares; when high, fewer. Over time this reduces volatility impact and removes the stress of timing the market.
Is DCA better than lump sum investing? ▼
Research shows lump sum investing outperforms DCA roughly two-thirds of the time in rising markets, since more money is invested earlier. However, DCA is psychologically easier and reduces regret risk. For most people building wealth from income, DCA is the practical default.
⚠️ Projections assume constant returns. Actual markets fluctuate. Past performance does not predict future results.