About the Dollar-Cost Averaging Calculator
Dollar-cost averaging means investing a fixed amount on a set schedule, no matter the price. You automatically buy more shares when prices are low and fewer when they're high, which removes the pressure of timing the market. This calculator projects the ending value.
How it’s calculated
Ending value = C·[((1+i)^N − 1) ÷ i], where C is the amount invested each period, i the periodic return, and N the number of periods.
Example calculation
Investing $500 a month at an 8% average return for 15 years grows to about $173,000, of which roughly $83,000 is gain.
Frequently asked questions
Is dollar-cost averaging better than a lump sum?
Historically, investing a lump sum right away tends to win because the money compounds longer. DCA's advantage is behavioral — it's easier to stick with and reduces regret if the market drops. See the Lump Sum vs. Monthly calculator.
Do I need to time the market?
No — that's the point. By investing on a fixed schedule you sidestep timing entirely and average your purchase price over time.
Projections are illustrative and assume a constant rate of return; real investments fluctuate and may lose value. Past performance does not guarantee future results. This is not investment advice.