Dollar Cost Averaging Calculator
Compare investing a lump sum all at once with spreading the same amount over time, and see how compounding and inflation shape each path.
What this calculator shows
It invests the same total two ways — all at once, and gradually over a chosen period — then compounds both at the same assumed return. It helps answer one question: invest all at once, or spread it out? Returns are assumptions, not forecasts or advice.
Inputs
Your monthly amount times the DCA period should equal the total invested.
The same total is used for both strategies.
Invested at the end of each month.
How many months you spread it over.
Compounded monthly from the annual assumption.
Used to estimate purchasing power.
How long both strategies compound.
Share or bookmark this scenario.
Results
How the two strategies compare after compounding, in nominal and inflation-adjusted terms.
Lump sum final value
$91,347
Invested all at once.
DCA final value
$88,077
Invested gradually.
Difference
$3,270
Lump sum is higher.
Inflation-adjusted difference
$1,559
In today's dollars.
Better under assumptions
Lump sum
Under these assumptions.
This model assumes a steady return. It does not simulate volatility, market crashes, or the order of returns (sequence risk). It does not guarantee that either strategy will perform better in reality.
Strategy comparison
Lump sum versus dollar cost averaging value over time.
Invested amount over time
How much money is actually invested in each strategy at each point.
Insights
What the model shows about timing and compounding — and what it deliberately leaves out.
The difference
Under these assumptions, lump sum ends higher by $3,270.
Early exposure
DCA invests gradually, so less money is exposed early in the projection.
Compounding and timing
If expected returns are positive, investing earlier often benefits more from compounding.
What this leaves out
DCA may reduce timing regret, but this model does not simulate volatility or market crashes.
Inflation affects both
Inflation reduces the purchasing power of both strategies over time.
Year-by-year comparison
Both strategies side by side each year, in nominal and inflation-adjusted terms.
| Year | Lump sum | DCA | Difference | Lump sum (real) | DCA (real) |
|---|---|---|---|---|---|
| 1 | $12,840 | $12,380 | $460 | $12,527 | $12,078 |
| 2 | $13,739 | $13,247 | $492 | $13,077 | $12,609 |
| 3 | $14,701 | $14,174 | $526 | $13,651 | $13,162 |
| 4 | $15,730 | $15,166 | $563 | $14,250 | $13,740 |
| 5 | $16,831 | $16,228 | $603 | $14,876 | $14,343 |
| 6 | $18,009 | $17,364 | $645 | $15,529 | $14,973 |
| 7 | $19,269 | $18,579 | $690 | $16,211 | $15,630 |
| 8 | $20,618 | $19,880 | $738 | $16,922 | $16,316 |
| 9 | $22,062 | $21,272 | $790 | $17,665 | $17,033 |
| 10 | $23,606 | $22,761 | $845 | $18,441 | $17,781 |
| 11 | $25,258 | $24,354 | $904 | $19,250 | $18,561 |
| 12 | $27,026 | $26,059 | $968 | $20,096 | $19,376 |
| 13 | $28,918 | $27,883 | $1,035 | $20,978 | $20,227 |
| 14 | $30,942 | $29,835 | $1,108 | $21,899 | $21,115 |
| 15 | $33,108 | $31,923 | $1,185 | $22,860 | $22,042 |
| 16 | $35,426 | $34,158 | $1,268 | $23,864 | $23,009 |
| 17 | $37,906 | $36,549 | $1,357 | $24,911 | $24,020 |
| 18 | $40,559 | $39,107 | $1,452 | $26,005 | $25,074 |
| 19 | $43,398 | $41,845 | $1,554 | $27,147 | $26,175 |
| 20 | $46,436 | $44,774 | $1,663 | $28,339 | $27,324 |
| 21 | $49,687 | $47,908 | $1,779 | $29,583 | $28,524 |
| 22 | $53,165 | $51,261 | $1,903 | $30,882 | $29,776 |
| 23 | $56,886 | $54,850 | $2,037 | $32,237 | $31,083 |
| 24 | $60,868 | $58,689 | $2,179 | $33,653 | $32,448 |
| 25 | $65,129 | $62,797 | $2,332 | $35,130 | $33,872 |
| 26 | $69,688 | $67,193 | $2,495 | $36,672 | $35,359 |
| 27 | $74,566 | $71,897 | $2,670 | $38,282 | $36,912 |
| 28 | $79,786 | $76,930 | $2,857 | $39,963 | $38,532 |
| 29 | $85,371 | $82,315 | $3,056 | $41,718 | $40,224 |
| 30 | $91,347 | $88,077 | $3,270 | $43,549 | $41,990 |
How this calculator works
This is an educational model, not a forecast. It compounds both strategies monthly at the same assumed return, adds DCA contributions at the end of each month, and discounts results by inflation. This model assumes money not yet invested during the DCA period earns 0%.
What dollar cost averaging means
Investing a fixed amount on a schedule, spreading your money in over time instead of all at once.
What lump sum investing means
Investing the full amount at once, so all of it is exposed to growth from the start.
Why lump sum can end higher
In a steady-growth model, money invested earlier has more time to compound, so lump sum often ends ahead.
Why DCA can still help
Spreading money in can reduce the regret of investing right before a drop, and can make it easier to start.
Why this is not a forecast
Real returns are uneven. This model assumes a steady return and cannot predict any actual outcome.
Why volatility matters
The order of returns (sequence risk) can change which approach feels better in real life — something this model does not simulate.
Keep going
Continue your journey
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Educational use only
Educational purposes only. Calculator results are estimates based on assumptions and user inputs. They are not financial, investment, legal, or tax advice. Investing involves risk, including possible loss of principal. Past performance does not guarantee future results.