Dollar-Cost Averaging Calculator — Compare DCA vs Lump Sum
Compare DCA vs lump sum investing to see which strategy wins over time.
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Your Results
DCA Final Value
$296,474
Total Invested
$120,000
DCA Gain
$176,474
Return
147%
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How This Calculator Works
DCA final value = Σ(monthly × (1+r)^remaining months). Lump sum = total × (1+r)^years. DCA reduces timing risk; lump sum maximizes expected returns when invested immediately.
Frequently Asked Questions
DCA means investing a fixed amount on a regular schedule (weekly, monthly) regardless of price. It removes timing risk and emotion from investing decisions.
Lump sum outperforms DCA ~66% of the time in rising markets. But DCA reduces regret risk and is often more realistic (investing paycheck by paycheck).
Start with what you can consistently maintain. Even $100/month in a broad index fund grows to $100K+ over 20 years at 7% returns.
Broad index funds (S&P 500, total market) are ideal for DCA — low fees, instant diversification, historically strong returns. Avoid timing individual stocks.
Especially well. DCA in bear markets buys more shares at lower prices, dramatically lowering average cost. The key is to keep investing through downturns.
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Calculations are for educational purposes only. Consult a qualified financial advisor for personalized advice.