Dollar Cost Averaging Calculator
What regular investing grows into.
Reviewed by the Calculation Machine team · How we check our maths
Your values
ⓘ Live results
Results
- Final value
- $319,144.22
- Total invested
- $125,000.00
- Investment growth
- $194,144.22
- Growth multiple
- 2.55×
- Monthly income at 4% withdrawal
- $1,063.81
Working
- 1FV = $500.00 × [((1+0.006667)^240 − 1) ÷ 0.006667] = $294,510.21
Quick answer
DCA invests a fixed sum on a schedule, buying more units when prices are low and smoothing entry risk.
The formula
FV = P × [((1+r)^n − 1) ÷ r]
Worked example
Worked example
Using the values the calculator loads with.
Inputs
- Amount invested each month500 $
- Years20
- Expected annual return8 %
- Initial lump sum5000 $
Result
- Final value$319,144.22
- Total invested$125,000.00
- Investment growth$194,144.22
- Growth multiple2.55×
- Monthly income at 4% withdrawal$1,063.81
How to use the Dollar Cost Averaging Calculator
- 1Enter how much you invest each month.
- 2Set your time horizon in years.
- 3Enter an expected annual return.
Frequently asked questions
Does DCA beat lump sum?
Historically lump sum wins about two-thirds of the time, but DCA reduces regret and timing risk — and it's how salaries work anyway.
What return should I assume?
7–8% nominal for a global equity index is a common long-run planning figure; use less if you hold bonds.
About this calculator
- Built and reviewed by the Calculation Machine team · How we build and test calculators
- Report an error