Dollar-Cost Averaging (DCA) Calculator
Compare DCA investing outcomes vs. a lump sum.
Enter your values
Enter the investment per period in $.
Choose one of: Monthly, Quarterly, Annually.
Enter the investment horizon in years.
Enter the assumed annual return in %.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- 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)
- $129,535.50
Quick answer
DCA smooths out purchase price volatility by investing fixed amounts at regular intervals, which can reduce risk versus a lump sum, though a lump sum tends to outperform on average in a rising market.
FV of a series = PMT x [((1+r)^n - 1)/r]
At a glance
| What it does | Compare DCA investing outcomes vs. a lump sum. |
|---|---|
| Category | Investing |
| Inputs needed | Investment per period, Frequency, Investment horizon, Assumed annual return |
| Main output | DCA ending value |
| Formula | FV of a series = PMT x [((1+r)^n - 1)/r] |
| Cost | Free — no sign-up, no download |
How to use the Dollar-Cost Averaging (DCA) Calculator
- 1Enter your regular investment amount and frequency.
- 2Set your time horizon and an assumed average annual return.
- 3Compare the DCA result to investing the full amount as a lump sum on day one.
Inputs explained
- Investment per period($)
- Enter the investment per period in $.
- Frequency
- Choose one of: Monthly, Quarterly, Annually.
- Investment horizon(years)
- Enter the investment horizon in years.
- Assumed annual return(%)
- Enter the assumed annual return in %.
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.
What do I need to enter into the Dollar-Cost Averaging (DCA) Calculator?
Just 4 values: investment per period, frequency, investment horizon, assumed annual return. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Dollar-Cost Averaging (DCA) Calculator work out the 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. It applies the formula FV of a series = PMT x [((1+r)^n - 1)/r] and shows the working so you can check each step by hand.
Is the Dollar-Cost Averaging (DCA) Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.