Dollar Cost Averaging Calculator
Dollar cost averaging means investing a fixed amount on a fixed schedule regardless of price. This calculator projects your portfolio value from steady monthly investing.
Portfolio Value
$299,437
Total Contributions
$121,000
Total Gain
$178,437
Portfolio Growth
Assumptions & limitations
- Investments are made at the end of each month and returns compound monthly.
- A constant return is assumed; actual DCA results depend on the price path.
- Fund fees and taxes are not modeled.
DCA future value
FV = P(1 + i)^{m} + PMT × [((1 + i)^{m} − 1) / i]P is the initial amount, PMT the monthly investment, i the monthly rate, and m the number of months. Growth is simulated month by month.
How It Works
- 1You invest the same dollar amount every month, buying more shares when prices are low and fewer when they’re high.
- 2This removes timing decisions and emotion from investing.
- 3Long horizons let compounding do most of the heavy lifting — the chart shows growth overtaking contributions.
Frequently Asked Questions
Is DCA better than lump-sum investing?
Statistically, lump-sum investing wins about two-thirds of the time because markets rise more often than they fall. DCA shines for regular income earners and for reducing regret risk.
What return assumption is realistic?
Broad U.S. stock funds have returned about 10% annually over long periods. Using 6–8% builds in a margin of safety.
Does this include fees or taxes?
No — subtract your fund’s expense ratio from the expected return, and remember taxable accounts owe tax on dividends and realized gains.
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