DCA calculator
This compares a fixed monthly investment with putting that same total in at the start. The default uses one constant return. You can paste a price path to count shares along those prices instead. The dollar-cost averaging guide uses the same example.
Periodic ending value = contribution × ((1 + periodic rate)periods − 1) ÷ periodic rate. Lump-sum ending value = total contributed × (1 + periodic rate)periods
Monthly investing
Enter a monthly amount, an annual return, and years.
How to compare DCA with a lump sum
- Enter the amount you add each month. Contributions arrive at the end of each month. The lump sum is that monthly amount times the number of months, invested at the start.
- Enter one annual return and the years. The same rate applies to both schedules in the default mode. Enter 0% or a positive percent. Choose nominal APR (monthly rate = annual ÷ 12) or an effective annual return. A negative rate is not modeled. Paste a price path if you want share counts along those prices instead.
- Compare the two ending values. The gap is the extra growth from having the full amount invested sooner. A different rate changes the gap.
Frequently asked questions
- Why is the lump sum higher when the return is positive?
- With one constant positive return, every dollar in the lump sum is invested for the full stretch. Dollars added later have fewer periods to grow. $500 a month for a year at 8% finishes lower than investing $6,000 on day one at that same rate.
- Does this model a falling market?
- Not in the default mode. The rate you type applies every period. You can paste a price path to count shares along those prices. Dollar-cost averaging is a way to spread entry prices when the path is unknown. The default comparison does not replay a stock's history.
- Is this investment advice?
- No. The calculator is for general informational and educational purposes only. It is not a recommendation to buy, sell, or hold any security.
Related tools
- Compound growth calculatorKeep a starting balance plus contributions in one path.
- DRIP calculatorAdd a dividend yield on top of the schedule.
- XIRR calculatorUse dated cash flows when the amounts are not equal each month.
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