Dollar Cost Averaging Calculator
Compare dollar-cost averaging vs lump-sum investing.
Your Inputs
Final value (DCA)
Invested
Lump sum (same total)
How to Use This Calculator
2. Set your expected annual return and time horizon.
The chart compares dollar-cost averaging against investing the same total as a single lump sum.
Calculation Method
Lump-sum comparison invests the same total (PMT × m) upfront, growing at the same monthly rate. Returns are assumptions, not guarantees.
Source: Annuity future-value formula; lump-sum comparison.
Steady saver
$1,000/mo · 8% · 20 yr
≈ $590,000
Higher return
$1,000/mo · 10% · 20 yr
≈ $765,000
Short horizon
$500/mo · 6% · 10 yr
≈ $82,000
Frequently Asked Questions
What is dollar-cost averaging?
Investing a fixed amount on a regular schedule regardless of price, which smooths out your average purchase price over time.
Is DCA better than lump-sum investing?
Historically, lump-sum often ends higher because markets rise over time, but DCA reduces timing risk and is how most people invest from a paycheck.
Does DCA guarantee a profit?
No. It manages timing risk but you can still lose money if the asset declines over your holding period.
What return should I assume?
Many investors model 6–8% for diversified equity portfolios. This calculator lets you test any rate.
Does this include fees or taxes?
No — results are gross. Subtract fund fees and account for taxes based on your account type.
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Last updated: May 24, 2026