DCA Calculator
About DCA Calculator
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 : Use DCA Calculator from the Finance category.
- Check the inputs : Review the required values and any optional settings.
- Read the formula : Use the formula and notes below to understand how the result is produced.
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.
Inputs
- Lump sum
- Monthly contribution
- Annual return
- Years
Outputs
- Lump-sum future value
- DCA future value
- DCA contributions
- Lump-sum advantage
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.