Dollar-Cost Averaging Calculator
Model a steady investing plan — monthly, biweekly or weekly — and see how consistency plus compound growth adds up over time.
Your plan
$
$
%
10 years
Estimated balance after 10 years
$121,378
You invested$65,000
Investment growth$56,378
ContributionsGrowth
Show yearly breakdown
| Year | Contributions | Growth | Balance |
|---|
How this calculation works
The formula
Each contribution is invested at the end of its period and compounds forward. The balance after N periods is:
FV = P · (1+i)N + M · ( ((1+i)N − 1) / i )
P = initial investment · M = contribution per period · i = rate per period · N = total number of periods.
Assumptions
- Contributions are made at the end of each period and invested immediately.
- The annual return is a nominal rate; results are pre-tax and pre-inflation.
- The return rate is assumed constant — real markets fluctuate, and DCA's benefit is precisely that it smooths those fluctuations.
- Fees, taxes, and inflation are not included.
Educational purposes only. Not financial advice. See the full methodology and disclaimer.
Dollar-cost averaging, explained
What is dollar-cost averaging?
It means investing a fixed amount at regular intervals — say $500 a month — no matter what the market is doing. You buy more shares when prices are low and fewer when they're high, smoothing your average purchase price.
Does investing frequency matter?
At the same return, more frequent investing (weekly vs monthly) compounds marginally faster because money enters the market sooner. Over long horizons the difference is usually small compared to your return rate and time horizon.
Is DCA better than investing all at once?
Historically, lump-sum investing has on average outperformed DCA, because money spends more time in the market. But DCA reduces the risk of investing right before a downturn. Try our DCA vs Lump Sum calculator to see the pure math.
What's a realistic return to assume?
Long-run stock-market averages are often cited around 7–10% nominal. Use 4% for a conservative estimate. Past performance never guarantees future results.