Interactive financial calculator
Dollar Cost Averaging Calculator
Estimate a recurring investment plan and, optionally, compare investing available capital gradually with investing it immediately.
- Free to use
- No account required
- Inputs stay in your browser
Methodology & Assumptions
How this estimate is calculated
Recurring plan: the annual return is converted to an effective weekly, biweekly, or monthly rate. The starting balance grows for one period, then the recurring contribution is added at period-end. The optional comparison gives progressive DCA and lump sum the same capital and horizon; undeployed cash earns the entered cash return.
Illustrative result: figures are rounded for display after calculations use full numeric precision. Actual results may differ.
Currency: dollar symbols are a display convention. Enter every monetary amount in one consistent currency; the calculator does not convert currencies or apply jurisdiction-specific tax rules.
How to Use This Dollar Cost Averaging Calculator
For a recurring DCA projection, enter the starting investment, contribution amount, weekly, biweekly, or monthly frequency, horizon, and annual return assumption. Enable the optional DCA vs lump sum comparison only when capital is already available today and you want to compare progressive deployment with immediate investing.
For the decision framework, equal-capital rules, waiting cash, and behavioral trade-offs, read Dollar Cost Averaging vs Lump Sum.
How Dollar Cost Averaging Is Modeled
Dollar cost averaging, or DCA, means investing a fixed amount on a recurring schedule. This calculator converts the annual return assumption into an effective rate matching the selected weekly, biweekly, or monthly contribution frequency. Growth is applied first and each contribution is added at the end of the period.
Ending value = initial investment × (1 + periodic rate)periods + recurring contribution × future-value annuity factor. Total contributed includes the initial investment and every scheduled contribution. Estimated investment growth is ending value minus total contributed, so it can be negative when the entered return is negative.
DCA Versus Lump Sum
The optional comparison is separate from the recurring plan. It gives both strategies the same capital today and the same total horizon. Lump sum invests the full amount immediately. Progressive DCA divides the capital into equal planned monthly transfers; the undistributed balance remains in cash and earns the entered cash return while waiting.
This is a scenario comparison, not a market forecast or recommendation. Actual prices vary through time, while this calculator uses steady rates and no historical price data. Undistributed cash earns the entered cash return, and equal portions of the original capital transfer at month-end.
Worked Examples
Recurring plan: with a $1,000 initial investment, a $100 monthly contribution, a one-year horizon, and a 0% return, total contributed and ending value are both $2,200. Estimated growth is $0. This shows the end-of-month contribution convention without compounding.
Equal-capital comparison: with $12,000 available today, a 12-month progressive deployment, a 10-year common horizon, 7% investment return, and 2% cash return, progressive DCA ends at about $22,916.50 and immediate lump sum at about $23,605.82. Lump sum is $689.31 ahead under these steady assumptions.
How to Interpret the Result
For the recurring plan, compare ending value with total contributed to separate modeled growth from deposits. For the optional comparison, a positive difference means immediate lump sum ends higher; a negative difference means progressive DCA ends higher. Neither result predicts a real market path.
Use the Compound Interest Calculator for a broader monthly accumulation scenario and the Expense Ratio Calculator to examine fee drag.
Common Mistakes and Limitations
Common mistakes include comparing unequal capital, using different horizons, ignoring waiting cash, treating future paychecks as capital already available today, or assuming contributions occur at the beginning of each period. The model excludes taxes, fees, inflation, trading costs, price volatility, and contribution interruptions. Currency selection changes display formatting only.
Frequently Asked Questions
Does DCA guarantee a better result than lump sum?
No. The relative result depends on the return path, cash return, deployment period, and timing. This calculator compares steady-rate scenarios and cannot determine which strategy will perform better in actual markets.
Are contributions made at the beginning or end of each period?
At the end. The existing balance receives one period of growth before the new weekly, biweekly, or monthly contribution is added.
Can I enter a negative expected return?
Yes, above −100%. This can illustrate a declining constant-rate scenario. It is not a prediction of a particular investment or market.
Does the calculator use historical stock prices?
No. It is not a backtester and does not connect to market data. All results come only from the assumptions entered in the page.