Dollar Cost Averaging Calculator

Dollar cost averaging (DCA) means investing a fixed amount at regular intervals regardless of market conditions — automatically buying more shares when prices are low and fewer when prices are high. This calculator projects the long-term growth of a consistent DCA strategy.

Enter Your Measurements

Monthly Investment Amount($)

Investment Period(years)

Average Annual Return(%)

Results

Future Portfolio Value

91,473.02

Total Invested

60,000.00

Total Growth

31,473.02

Return on Investment

52.5

Formula

FV = PMT × [(1 + r)^n − 1] / r ROI = (Total Growth / Total Invested) × 100

How to Use This Calculator

How to Use

1
Enter the fixed amount you plan to invest each month.
2
Enter the number of years you'll continue the DCA strategy.
3
Set your expected average annual return.
4
See your projected portfolio value, total invested, and investment growth.

Frequently Asked Questions

Why is DCA better than trying to time the market?

Research consistently shows that even professional investors cannot reliably time the market. DCA removes emotion from investing and ensures you stay invested through market cycles, capturing long-term growth.

How is DCA different from a lump sum investment?

A lump sum typically outperforms DCA when markets trend upward (which is historically the most common scenario). However, DCA reduces the risk of investing a large sum right before a market downturn.

In-Depth Guides

📖

Dollar Cost Averaging: The Simple Investing Strategy That Works

Understand how dollar cost averaging works, how it compares to lump sum investing, and why automating DCA is one of the most reliable wealth-building strategies.

📖

Index Fund Investing for Beginners: What You Need to Know

Everything beginners need to know about index fund investing — expense ratios, S&P 500 returns, how to choose funds, and getting started with minimal effort.

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About This Calculator

This calculator uses the formula: FV = PMT × [(1 + r)^n − 1] / r ROI = (Total Growth / Total Invested) × 100. All calculations follow industry-standard methods. Results are estimates — always verify with a licensed professional for structural or code-compliant work.

Built and maintained by the CalcSmart team. Last updated March 2026.

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