Dollar Cost Averaging Calculator

Dollar cost averaging spreads a fixed investment amount across regular intervals instead of committing everything at once. Putting the two approaches side by side lets you see how a steady monthly contribution stacks up against investing the same total as a single lump sum at the start.

The projection uses one fixed annual return that you enter (8% by default), applied as a steady monthly rate over the years you set. The averaging side invests your monthly amount at the end of each month, on top of any initial lump sum you enter; the lump-sum side puts the same total, every dollar you would contribute over the whole period, to work on day one. Because the return never varies, the lump sum always finishes ahead whenever the return is positive; the calculator does not simulate price swings, so it cannot show the falling markets in which averaging comes out ahead.

One thing worth noting: investors often abandon averaging when markets fall, yet that is exactly when buying continues to pick up more shares at lower prices. Treat these figures as projections rather than promises, since prior performance tells you nothing certain about what comes next. Weigh the output against your own circumstances and talk with a financial advisor before acting.