DCA Calculator
Dollar-Cost Averaging means investing a fixed amount at regular intervals regardless of market price. See how consistent contributions compound over time — and how DCA compares to putting the same total in as a lump sum on day one.
Parameters
Final value
$359,130
at age 50
Total invested
$120,000
$500.00 /month
Total return
+199.3%
$239,130 gain
DCA vs. Lump Sum — same money, different timing
DCA Strategy
$359,130
$500.00 /month × 20y
Lump Sum
WINNER$807,300
$120,000 invested on day 1
Lump sum wins by $448,170. In a steadily rising market, money invested earlier has more time to compound — that's why lump sum often outperforms. DCA's advantage: you don't need the full amount upfront, and you avoid the risk of investing everything at a market peak.
Portfolio growth over time
Year-by-year breakdown
| Year | Balance | Invested | Return |
|---|---|---|---|
| Year 1 | $6,270 | $6,000 | +4.5% |
| Year 2 | $13,168 | $12,000 | +9.7% |
| Year 3 | $20,755 | $18,000 | +15.3% |
| Year 4 | $29,100 | $24,000 | +21.3% |
| Year 5 | $38,281 | $30,000 | +27.6% |
| Year 6 | $48,379 | $36,000 | +34.4% |
| Year 7 | $59,487 | $42,000 | +41.6% |
| Year 8 | $71,706 | $48,000 | +49.4% |
| Year 9 | $85,147 | $54,000 | +57.7% |
| Year 10 | $99,932 | $60,000 | +66.6% |
| Year 11 | $116,195 | $66,000 | +76.1% |
| Year 12 | $134,085 | $72,000 | +86.2% |
| Year 13 | $153,764 | $78,000 | +97.1% |
| Year 14 | $175,411 | $84,000 | +108.8% |
| Year 15 | $199,222 | $90,000 | +121.4% |
| Year 16 | $225,414 | $96,000 | +134.8% |
| Year 17 | $254,226 | $102,000 | +149.2% |
| Year 18 | $285,919 | $108,000 | +164.7% |
| Year 19 | $320,781 | $114,000 | +181.4% |
| Year 20 | $359,130 | $120,000 | +199.3% |
What is Dollar-Cost Averaging (DCA)?
Dollar-Cost Averaging is the strategy of investing a fixed amount at regular intervals — weekly, bi-weekly, or monthly — regardless of whether the market is up or down. When prices drop, your fixed amount buys more shares. When prices rise, you buy fewer. Over time, this naturally lowers your average cost per share compared to trying to time the market.
DCA vs. Lump Sum
Research (including a Vanguard study across US, UK, and Australian markets) shows that lump sum investing outperforms DCA roughly 2 out of 3 timesin a trending market — because money invested earlier has more time to compound. But this assumes you already have the full lump sum available, which most people don't.
DCA's real advantages: you can start immediately with whatever you have; you build a consistent saving habit; and you remove the psychological burden of "waiting for the right moment" — a moment that research shows investors almost always mis-time.
Weekly vs. monthly DCA
More frequent contributions slightly reduce the average cost basis by spreading purchases across more price points. In practice, the difference between weekly and monthly DCA is small. Monthly is most common because it aligns with salary cycles. Bi-weekly aligns with US bi-weekly paychecks — a popular choice for automatic payroll investing.
For educational purposes only. Not financial advice. Past returns do not guarantee future results.