Dollar Cost Averaging Calculator
What regular investing grows into.
Enter your values
Enter the amount invested each month in $.
Enter the years you are working with.
Enter the expected annual return in %.
Enter the initial lump sum 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.
- 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] = $294,510.21
Quick answer
DCA invests a fixed sum on a schedule, buying more units when prices are low and smoothing entry risk.
FV = P × [((1+r)^n − 1) ÷ r]
At a glance
| What it does | What regular investing grows into. |
|---|---|
| Category | Investing |
| Inputs needed | Amount invested each month, Years, Expected annual return, Initial lump sum |
| Main output | Final value |
| Formula | FV = P × [((1+r)^n − 1) ÷ r] |
| Cost | Free — no sign-up, no download |
How to use the Dollar Cost Averaging Calculator
- 1Enter how much you invest each month.
- 2Set your time horizon in years.
- 3Enter an expected annual return.
Inputs explained
- Amount invested each month($)
- Enter the amount invested each month in $.
- Years
- Enter the years you are working with.
- Expected annual return(%)
- Enter the expected annual return in %.
- Initial lump sum($)
- Enter the initial lump sum in $.
Worked example
Using the values the calculator loads with:
Inputs
- Amount invested each month500 $
- Years20
- Expected annual return8 %
- Initial lump sum5000 $
Results
- 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
- FV = $500.00 × [((1+0.006667)^240 − 1) ÷ 0.006667] = $294,510.21
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.
What do I need to enter into the Dollar Cost Averaging Calculator?
Just 4 values: amount invested each month, years, expected annual return, initial lump sum. 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 Calculator work out the answer?
DCA invests a fixed sum on a schedule, buying more units when prices are low and smoothing entry risk. It applies the formula FV = P × [((1+r)^n − 1) ÷ r] and shows the working so you can check each step by hand.
Is the Dollar Cost Averaging 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.