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Dollar Cost Averaging Calculator

Calculate the results of regular fixed-amount investing. See how DCA lowers your average cost and builds long-term wealth.

DCA Settings

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DCA RESULTS AFTER 5 YEARS

$36,707

Portfolio value · +22.4% total return

Total invested
$30,000
Total gain
$6,707
Avg buy price
$120.09
Shares accumulated
249.82

DCA VS LUMP SUM COMPARISON

DCA strategy
$36,707
Lump sum (year 1)
$44,080

Lump sum outperforms — markets trending consistently upward favors early investment.

Frequently Asked Questions

What is dollar cost averaging?

DCA means investing a fixed dollar amount at regular intervals. When prices drop you buy more shares; when prices rise you buy fewer. Over time this reduces your average cost per share.

Is DCA better than lump sum?

Lump sum outperforms DCA ~66% of the time historically since markets trend upward. But DCA removes emotion, fits regular income, and significantly outperforms doing nothing.

How often should I invest with DCA?

Monthly aligns with most pay schedules and minimizes transaction costs. The mathematical difference between weekly and monthly DCA is negligible for most investors.

For educational purposes only. Not financial advice. Consult a qualified advisor before making investment decisions.