Calculators · DCA

DCA calculator

See how regular investing (DCA) compares with a lump sum for the same total amount.

Results are hypothetical, assume a constant return, and don't account for fees or taxes.

Assumptions

The return is constant for the whole period.
Contributions are made at the end of each period.
The lump sum invests the entire amount at the start.
Fees and taxes are not taken into account.

DCA value after 10 years

34,210.35€

+10,210.35 €·+42.5 %

Total invested: 24,000.00€
Lump sum: 47,211.63€
Difference vs lump sum: -27.5%

With a constant return, a lump sum spends more time in the market. DCA reduces the risk of a bad entry point.

Formula

DCA = Contribution × [((1 + r_p)^N − 1) / r_p]
Lump sum = (Contribution × N) × (1 + r_p)^N

r_p = (1 + r)^(1/periods) − 1

Contribution: — amount per period
N: — total number of periods
r: — annual return (decimal)
r_p: — return per period

The number of periods depends on the frequency (weekly 52, monthly 12, quarterly 4 per year).

Frequently asked questions

What is dollar-cost averaging (DCA)?

DCA is investing a fixed amount at regular intervals regardless of price. You buy more units when they're cheap and fewer when they're expensive.

Is DCA better than lump-sum investing?

It depends. Historically lump-sum often wins because markets rise over time, but DCA reduces timing risk and is easier to stick to. See the "DCA vs lump sum" simulator.

Is this a forecast or investment advice?

No. The result is an educational illustration based on assumptions you set — not a forecast, and not investment advice or a recommendation. You make the decision.