Invest a fixed amount every month and let it compound. See your total invested, projected final value and gain — plus a side-by-side DCA vs lump-sum comparison so you understand the trade-off.
If you instead invested the same $0 as a single lump sum on day one at the same return:
Dollar-cost averaging (DCA) is the simple, powerful habit of investing the same amount on a regular schedule — say $500 on the first of every month — no matter what the market is doing. When prices fall, your fixed payment buys more shares; when prices rise, it buys fewer. The result is an automatic "buy more when it's cheap" mechanism that lowers your average cost per share and, just as importantly, takes emotion and market-timing out of the decision.
This calculator treats each monthly deposit as part of an annuity that compounds at your chosen rate. The closed-form future value of regular monthly investing is:
FV = PMT × [ ((1 + i)N − 1) ÷ i ]
where PMT is the monthly amount, i is the monthly return (annual ÷ 12), and N is the total number of months. Your total invested is simply PMT × N, and your gain is the future value minus what you put in.
Worked example: Invest $500 a month for 20 years at an 8% expected annual return. You contribute $120,000 of your own money, but it grows to roughly $294,500 — a gain of about $174,500, more than the amount you deposited. That is compounding rewarding consistency.
A common question is whether it is better to drip money in monthly (DCA) or invest a big lump sum all at once. The calculator shows both. The maths is clear: if markets rise over the period, a lump sum invested up front usually wins, because every dollar is exposed to growth for longer. In our example, the same $120,000 invested as a lump sum on day one would grow to about $591,000 — far more, simply because it compounded for the full 20 years instead of trickling in.
So why does almost everyone use DCA? Two reasons. First, most people don't have a lump sum — they invest what they earn, a bit each paycheck, which is DCA by definition. Second, DCA is lower-risk and lower-stress: it removes the gut-wrenching possibility of investing your life savings the week before a crash, and it keeps you buying steadily through downturns when fear says stop. The lump-sum edge is an average across rising markets; DCA's edge is psychological discipline and risk control.
The biggest enemy of long-term returns is not picking the wrong stock — it is bailing out at the bottom and missing the rebound. By automating a fixed monthly contribution, DCA quietly enforces the one behaviour that matters most: keep investing through thick and thin. To read the full concept, see dollar-cost averaging explained, and to feel how markets swing without risking a cent, play the stock market simulator.
Reality check: this projection assumes a smooth, constant return that real markets never deliver. Actual DCA results depend on the exact path of prices, and returns can be negative for long stretches. For education only, not financial advice — see the U.S. SEC at investor.gov.
Compare a one-time deposit's growth with the compound interest calculator, or project your whole retirement plan with the retirement savings calculator.
Dollar-cost averaging (DCA) means investing a fixed amount on a regular schedule — for example $500 every month — regardless of price. It automatically buys more shares when prices are low and fewer when high, smoothing your average cost and removing the temptation to time the market.
If markets generally rise, a lump sum invested all at once usually ends with more money because it is exposed to growth sooner. DCA wins on risk control and discipline: it lowers the chance of investing everything right before a drop and matches how most people actually save.
It compounds each monthly contribution at the monthly equivalent of your expected annual return using the future value of an annuity. The lump-sum comparison invests the same total at the start and compounds it for the full period.
Yes. It runs entirely in your browser with no sign-up and no data stored. Results assume a constant return and are educational estimates, not financial advice.