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Create AccountDCA Calculator
See what investing a fixed amount at regular intervals builds up to over time.
Your Result
The calculation runs in your browser. Rates used for currency conversion are indicative — check your broker for the exact figure.
Dollar cost averaging means buying a fixed amount at a fixed interval regardless of price. It removes the decision of when to buy, which is the decision most people get wrong, and it means more units are bought when the price is low and fewer when it is high.
The calculator separates what you put in from what the market added, because the two get conflated. A balance that has grown is not necessarily a profit — most of it may simply be money you deposited.
When to use it
- When starting a long-term position and unsure about timing.
- When comparing a lump sum against spreading the same money over months.
- When checking whether a portfolio has actually grown or has just been fed.
- When planning a savings rate to reach a target by a date.
The initial amount compounds for the whole period; each contribution compounds only for the periods after it lands.
Final = Initial × (1 + r)ⁿ + Contribution × [((1 + r)ⁿ − 1) ÷ r]
Total Invested = Initial + (Contribution × n)
Gain = Final − Total Invested- When the return is zero the formula collapses to plain addition, which is the correct answer rather than an error.
- Return on money invested is measured against everything you put in, not against the starting amount alone.
- A negative return compounds the same way. Averaging in does not protect against a market that keeps falling.
$500 to start, $200 added each month for 36 months, at 1% per month.
Working: the $500 grows to $715 over three years, and the monthly $200 contributions add $8,615. Of the final $9,331, $7,700 is money you deposited — the market supplied $1,631.
Is DCA better than investing a lump sum?
Historically a lump sum wins more often, because markets rise more than they fall and the money is exposed sooner. DCA wins on behaviour: it is far easier to keep doing through a downturn.
What return should I assume?
Use something you can defend. For a broad equity index, roughly 0.6% a month has been a long-run average. For a trading account, use what your own record actually shows.
Does this account for fees or tax?
No. Both reduce the final figure, and on a monthly contribution schedule a flat fee per transaction can matter more than the percentage suggests.
Is DCA the same as averaging down?
No. DCA is a schedule decided in advance and applied regardless of price. Averaging down is adding to a losing position because it has fallen, which is a different decision with a different risk.
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