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Dollar Cost Averaging Calculator

See how regular investing smooths out market volatility

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DCA vs Lump Sum

Compare investing a fixed amount regularly vs putting it all in at once.

Total Amount to Invest ($)

DCA Period (months)

Expected Annual Return (%)

Annual Volatility (%)

Frequently Asked Questions

Which is better: DCA or lump sum?

Historically, lump sum investing beats DCA about two-thirds of the time because markets tend to go up. DCA is better psychologically because it reduces regret and smooths out the impact of short-term drops. If you have a lump sum and can handle volatility, invest it all now. If volatility keeps you up at night, DCA.

Is DCA the same as investing from each paycheck?

Yes, essentially. If you contribute to a 401k each paycheck, you are dollar cost averaging automatically. The term usually refers to deliberately spreading a lump sum over time, but the math is the same.