DCA calculator

This compares a fixed monthly investment with putting that same total in at the start. Both sides use one constant return, so the page does not replay a stock's price history. 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. The monthly rate is the annual return divided by 12.
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?: No. The rate you type applies every period. Dollar-cost averaging is a way to spread entry prices when the path is unknown. This page compares the two schedules under a rate you choose. It 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 guides

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. The monthly rate is the annual return divided by 12.

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?

No. The rate you type applies every period. Dollar-cost averaging is a way to spread entry prices when the path is unknown. This page compares the two schedules under a rate you choose. It 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.

Monthly investing

How to compare DCA with a lump sum

Frequently asked questions

Related tools

Related guides

Monthly investing

How to compare DCA with a lump sum

Frequently asked questions

Related tools

Related guides