Calculator

Dollar-cost averaging calculator

Dollar-cost averaging is the practice of investing the same dollar amount on a regular schedule regardless of price. It smooths out entry price and removes the pressure to time markets.

Updated July 2026
$
%
Projected value
$261,983
Total contributed
$120,000
Growth from returns
$141,983
118% of contributions

How it works

Shares_t = Contribution / Price_t ; FinalValue = Σ Shares × FinalPrice
  • Enter your monthly contribution and horizon.
  • Enter an expected annualised return (used as constant compounding for this simple model).
  • The calculator returns total invested, final value, and the average cost per period.

Worked examples

  • $500/month for 20 years at 7% grows to about $260,000 from $120,000 contributed.
  • Cutting contributions in half doubles the years needed for the same result — time matters more than amount at the margin.

Frequently asked questions

Does DCA beat lump-sum investing?

On average, lump-sum wins about two-thirds of the time because markets rise most years. DCA wins on psychology — investors are more likely to stay in.

How often should I contribute?

Monthly is standard and matches most paycheques. Weekly and biweekly work fine; daily adds friction without meaningful benefit.

Related

Educational information only. Not personalised financial advice. Consult a qualified professional for decisions specific to your situation.