DCA Calculator
Compare lump-sum investing with dollar-cost averaging over time.
Lump-sum future value
$300,850.72
DCA future value
$282,168.61
DCA contributions
$130,000.00
Lump-sum advantage
$18,682.11
Formula
Future values use monthly compounding over the selected number of years.
Disclaimer
- The lump sum is invested immediately in one scenario and spread evenly over the same horizon in the other.
- The monthly contribution applies to both scenarios.
The DCA calculator projects a lump-sum investment and monthly contributions over the same time horizon using an expected annual return.
How to Use
The DCA calculator projects a lump-sum investment and monthly contributions over the same time horizon using an expected annual return. Enter the Lump sum, Monthly contribution, Annual return, and Years values and review the Lump-sum future value, DCA future value, DCA contributions, and Lump-sum advantage outputs after you calculate.
- Open the calculator : Start with DCA Calculator.
- Enter values : Fill in the required inputs and any optional settings.
- Review the result : Read the output and use the about page for more detail if needed.
Common Questions
What does the DCA Calculator compare?
It compares a lump sum investment with repeated monthly purchases over time.
What assumptions affect the comparison?
Monthly timing, return assumptions, and any fees can change the result.