● Invest consistently, beat market timing

Dollar-Cost Averaging Calculator

See how investing a fixed amount regularly builds wealth over time — and how it compares to investing a lump sum.

Dollar-cost averaging (DCA) means investing a fixed amount at regular intervals regardless of market price. Investing $500/month in an index fund returning 8%/year for 20 years turns $120,000 of contributions into over $294,000. DCA removes the pressure to time the market.

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DCA Calculator

Regular investment · Period · Expected return · DCA vs lump-sum comparison

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Your DCA plan

Fixed amount per period

Investment frequency

Investment horizon

years

Expected annual return

% /yr

Lump-sum comparison amount (optional — same total as DCA)

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Results

Total invested (DCA)

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Final DCA balance

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DCA total return

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Lump-sum balance same amount invested on day 1

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Interest & gains earned

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How it's calculated

DCA: future value of a regular annuity

DCA is mathematically equivalent to the future value of an annuity — a series of equal payments at regular intervals, each compounding for a different number of periods.

DCA Final Value = PMT × [(1 + r/n)^(n×t) − 1] / (r/n) Lump-Sum Final Value = L × (1 + r)^t Where PMT = periodic payment, r = annual rate, n = periods/year, t = years, L = lump sum

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Total contributed
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DCA final value
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Lump-sum comparison
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Dollar-cost averaging (DCA): Investing a fixed amount at regular intervals regardless of market price. Automatically buys more shares when prices are low and fewer when high.
Lump-sum investing: Investing the entire amount at once. Statistically outperforms DCA in rising markets (~2/3 of the time), but carries higher sequence-of-returns risk.
Annuity: A series of equal payments at regular intervals. DCA is a growing annuity when you increase contributions over time.

🔢 Worked example

Investing $500/month at 8% for 10 years grows to about $91,000, from $60,000 contributed — the extra ~$31,000 is compound growth.

Disclaimer: this calculator assumes a constant rate of return. Real market returns are volatile and unpredictable. DCA does not guarantee a profit or protect against loss in declining markets. Always confirm with an official source before deciding.

Frequently asked questions

What is dollar-cost averaging?

DCA is investing a fixed amount at regular intervals regardless of market price. When prices fall, your fixed amount buys more shares; when prices rise, it buys fewer. Over time this produces an average cost per share that is often lower than the average price, and it eliminates the need to time the market.

Does DCA beat lump-sum investing?

In trending-up markets, a lump-sum invested on day 1 outperforms DCA about 2/3 of the time (Vanguard research, 2012). However, most people receive income periodically — so DCA is the natural strategy. It also drastically reduces the risk of investing everything right before a crash.

What's the best frequency for DCA?

Monthly aligns with most salary cycles and is practical. Weekly DCA produces marginally better risk reduction (more price diversification), but the difference is small. The key is consistency — pick a frequency you can maintain for years.

Can I DCA into ETFs and index funds?

Yes — DCA is the standard recommendation for index fund investing. Most brokerages allow automatic monthly investments with no transaction fees. For ETFs, check whether your broker offers fractional shares or scheduled purchases.

Does DCA work for ETFs, stocks, and crypto?

Yes. DCA works for any volatile asset: index ETFs, individual stocks, Bitcoin, gold. It is most powerful for broadly diversified index funds where the long-term trend is upward but short-term volatility is high.

Are my results saved? Do I need an account?

No account or sign-up needed. Every calculation is saved automatically in your own browser, and you can also pin a result with the save button. Nothing is sent to any server: the data stays on your device and can be erased at any time with the clear button.

How do I track my progress over time?

From the fourth entry onward a “View comparison chart” button appears, opening a line chart with every entry in time order plus an indicator panel: total change, average per entry, lowest and highest value and the period covered. You can also export the history as CSV.

About this calculator

The dollar-cost averaging (DCA) calculator shows the average price you pay when you invest a fixed amount at regular intervals instead of all at once. As the price moves up and down, each contribution buys a different number of shares, and the tool works out your overall average cost and total position.

Because you buy more shares when prices are low and fewer when they are high, dollar-cost averaging smooths out the effect of market timing and volatility. This calculator makes that average visible so you can compare it with the market price and understand how a steady investing habit plays out over time.

By Vinicius Fonseca · Reviewed against official sources · Updated Jul 2026 · How we calculate →