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Dollar-Cost Averaging Calculator

Project the outcome of investing a fixed amount at a regular interval.
Final value
$294,510
Total invested
$120,000
Gain
$174,510

Dollar-cost averaging (DCA) means investing a fixed amount on a regular schedule regardless of price. It removes the pressure of timing the market and smooths out your average entry price. This tool estimates the future value of a recurring contribution compounding at an assumed annual return.

Formula reviewed 2026-08-021 primary sourceMethodology and disclosures →

How this dollar-cost averaging calculator works

The calculator treats each monthly investment as a separate contribution that compounds from the month it is added through the end of the selected period.

Formula

FV = C × [((1 + r/12)12t − 1) ÷ (r/12)]

Dollar-cost averaging can reduce timing pressure, but it does not prevent losses or guarantee that it will outperform investing a lump sum.

Primary specifications

Before you use the result

Assumptions

  • • The same amount is invested at the end of every month.
  • • The assumed annual return is applied evenly through the period.
  • • It does not model actual market prices, fees, taxes, or a lump-sum alternative.

Quick start

  1. 1. Set the amount you can invest consistently each month.
  2. 2. Choose a long-term return assumption rather than a short-term prediction.
  3. 3. Compare several time horizons to see how consistency changes the result.

Frequently asked questions

Is dollar-cost averaging better than investing a lump sum?

Lump-sum investing wins more often historically because markets tend to rise, so money is exposed sooner. But DCA reduces regret and risk if you invest as you earn, and it enforces discipline.

How often should I invest with DCA?

Any consistent interval works — weekly, biweekly, or monthly. Aligning contributions with your paycheck is the most sustainable approach.

Does DCA prevent investment losses?

No. Regular investing changes purchase timing but cannot prevent losses when the investment declines or fails.

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The math is easy. The macro is hard.

Dollar-Cost Averaging Calculator shows the arithmetic. Members get the monthly call that decides which inputs matter, plus written breakpoints when the facts move. $15/month or $150/year.

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