Dollar-Cost Averaging Calculator
Project what investing the same amount every month, through ups and downs, grows into over years of steady buying.
Balance vs. contributions over time
Dollar-cost averaging (DCA) means investing a fixed dollar amount on a fixed schedule regardless of price. You automatically buy more shares when prices are low and fewer when they're high, which removes timing decisions and the temptation to wait for a "better" entry. This calculator projects the strategy at a steady average return; real returns arrive unevenly, but over long horizons the average is what compounds.
Frequently asked questions
Is dollar-cost averaging better than investing a lump sum?
Historically, investing a lump sum immediately has beaten spreading it out about two-thirds of the time, because markets rise more often than they fall. DCA's real advantages are behavioral: it matches how paychecks arrive, removes timing anxiety, and keeps you buying through downturns when it matters most.
What return should I use for the S&P 500?
About 10% per year is the long-run historical average before inflation (roughly 7% after). Individual decades vary enormously, from negative to nearly 20% annualized, so treat any single number as a planning assumption, not a promise.
Does this include dividends?
Use a total-return assumption (price growth plus reinvested dividends) and the answer includes them. The ~10% S&P 500 historical figure is a total-return number.
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Calculators model hypothetical outcomes from the inputs you provide. They are informational only, not financial, investment, tax, or legal advice.