Dollar-Cost Averaging (DCA) Calculator
Compare DCA investing outcomes vs. a lump sum.
Enter your values
ⓘ Live results
- DCA ending value
- $91,473.02
- Total invested
- $60,000.00
- Growth from DCA
- $31,473.02
- Lump sum comparison (same total, invested day 1)
- $129,535.50
Quick answer
DCA smooths out purchase price volatility by investing fixed amounts at regular intervals, which can reduce risk versus a lump sum, though a lump sum tends to outperform on average in a rising market.
FV of a series = PMT x [((1+r)^n - 1)/r]
How to use the Dollar-Cost Averaging (DCA) Calculator
- 1Enter your regular investment amount and frequency.
- 2Set your time horizon and an assumed average annual return.
- 3Compare the DCA result to investing the full amount as a lump sum on day one.
Worked example
Using the values the calculator loads with:
Inputs
- Investment per period500 $
- FrequencyMonthly
- Investment horizon10 years
- Assumed annual return8 %
Results
- DCA ending value$91,473.02
- Total invested$60,000.00
- Growth from DCA$31,473.02
- Lump sum comparison (same total, invested day 1)$129,535.50
Frequently asked questions
Is DCA better than lump sum investing?
Historically lump sum tends to outperform since markets trend upward over time, but DCA reduces the risk of poor timing and psychological stress.
Does this account for market volatility?
No — it uses a constant assumed return; real returns vary year to year, which is the main reason DCA can help emotionally.
About this calculator
- Built and reviewed by James Whitfield · How we build and test calculators
- Report an error
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.