Dollar Cost Averaging Calculator
See the benefits of investing a fixed amount regularly.
$103,811
Final Value
$54,000
Total Invested
$49,811
Returns
Learn More
Understanding This Calculator
What this calculator does
This calculator compares investing a fixed amount at regular intervals (dollar-cost averaging) against investing a lump sum all at once, showing how the averaging approach smooths out market volatility.
How to use the results
- 1.Enter your total amount to invest and how often you'll invest it (weekly, monthly, quarterly).
- 2.Set a simulated price path or use the default volatility to see how DCA averages your purchase price.
- 3.Compare the DCA result to a lump-sum result to understand the tradeoff.
Worked example
Investing $12,000 as $1,000/month over a year when prices swing between $90 and $110 averages your cost to roughly the midpoint, so you buy more shares when prices are low and fewer when high.
Important assumptions & limitations
- •DCA works best when markets are volatile or declining; in a steadily rising market, lump sum usually wins.
- •The calculator assumes you invest regardless of price — the whole point of DCA is removing timing decisions.
- •Does not account for trading fees (negligible at most modern brokers) or taxes.
Frequently asked questions
Related Calculators
Related Resources
Mike Starr
Founder, FinanceWizardTools · M.S. Organizational Management