Dollar-Cost Averaging (DCA) Calculator
See how regular, fixed investments could grow over time — and how that compares with putting the same total in as a single lump sum. Adjust the amount, frequency and expected return to fit your plan.
Fixed amount you invest each month.
Default 7% is an illustrative long-run equity assumption — adjust to your own expectation. Not guaranteed.
Projected DCA value
$174,094
After 10 years of $1,000 every month at 7% p.a.
Total invested
$120,000
Total gains
$54,094
Lump-sum value
$241,159
Same total invested upfront
Lump sum ahead by
$67,065
Contributions
120
Growth multiple
1.45×
Estimates only. Both paths assume a constant return compounded monthly; the lump-sum comparison invests the same total at the start. Real DCA smooths your purchase price against market volatility — actual returns vary and may be negative.
| Year | Invested | DCA value | Lump-sum value |
|---|---|---|---|
| 0 | $1,000 | $1,000 | $120,000 |
| 1 | $13,000 | $13,465 | $128,675 |
| 2 | $25,000 | $26,831 | $137,977 |
| 3 | $37,000 | $41,163 | $147,951 |
| 4 | $49,000 | $56,531 | $158,646 |
| 5 | $61,000 | $73,011 | $170,115 |
| 6 | $73,000 | $90,681 | $182,413 |
| 7 | $85,000 | $109,629 | $195,599 |
| 8 | $97,000 | $129,947 | $209,739 |
| 9 | $109,000 | $151,733 | $224,901 |
| 10 | $120,000 | $174,094 | $241,159 |
How dollar-cost averaging works
With dollar-cost averaging you commit a fixed sum on a fixed schedule — for example $1,000 every month into a low-cost index fund or ETF. Because the amount is constant, you buy more units when prices dip and fewer when they spike, so your average cost per unit smooths out the market’s ups and downs. It is the simplest way to turn regular savings into a disciplined investing habit.
DCA versus a lump sum
The calculator grows both your periodic contributions and an equivalent lump sum at the same assumed return. When returns are positive, the lump sum tends to finish ahead simply because it is invested for longer. In practice, though, few people have a large sum sitting idle, and a lump sum exposes you to bad timing. DCA trades a little expected return for far less timing risk and a routine you can actually stick to.
Treat the expected return as an assumption rather than a promise, and remember results are nominal — reduce the rate by your inflation expectation for a real view. To compare other approaches, see our compound interest and portfolio growth calculators.
Frequently asked questions
What is dollar-cost averaging (DCA)?
Dollar-cost averaging means investing a fixed amount at regular intervals — say $1,000 every month — regardless of price. You automatically buy more units when prices are low and fewer when prices are high, which spreads your entry over time instead of betting on one moment.
Is lump-sum investing better than DCA?
Mathematically, if markets rise over time, investing a lump sum upfront usually ends up ahead because the money is invested longer. This calculator shows that gap. DCA wins on behaviour and risk: it removes the pressure of timing the market, smooths your average purchase price, and matches how most people actually save — from each pay cheque.
What return rate should I use?
It depends on what you invest in. A diversified global equity portfolio has historically returned roughly 7% a year over the long run, while safer options like Singapore Savings Bonds return around 2%. The 7% default is an illustrative assumption only — set it to your own expectation, and remember returns are never guaranteed.
Does this calculator account for fees or inflation?
No. Results are nominal and exclude brokerage fees, fund expense ratios and taxes. To gauge real spending power, subtract an inflation assumption (around 2% a year for Singapore) from your expected return before entering it.