— Investment
Dollar-Cost Averaging Calculator
Invest a fixed amount on a schedule and project where it lands — your contributions plus growth at an expected return, year by year.
Future value in 20 years
$260,463.33
- Total contributed
- $120,000
- Investment growth
- $140,463.33
- Total return
- 117.05%
— Year by year
| Year | Opening | Contributions | Growth | Balance |
|---|---|---|---|---|
| 1 | $0 | $6,000 | $196.29 | $6,196.29 |
| 2 | $6,196.29 | $6,000 | $644.22 | $12,840.52 |
| 3 | $12,840.52 | $6,000 | $1,124.53 | $19,965.05 |
| 4 | $19,965.05 | $6,000 | $1,639.57 | $27,604.62 |
| 5 | $27,604.62 | $6,000 | $2,191.83 | $35,796.45 |
| 6 | $35,796.45 | $6,000 | $2,784.02 | $44,580.47 |
| 7 | $44,580.47 | $6,000 | $3,419.02 | $53,999.49 |
| 8 | $53,999.49 | $6,000 | $4,099.92 | $64,099.41 |
| 9 | $64,099.41 | $6,000 | $4,830.04 | $74,929.45 |
| 10 | $74,929.45 | $6,000 | $5,612.95 | $86,542.4 |
| 11 | $86,542.4 | $6,000 | $6,452.45 | $98,994.85 |
| 12 | $98,994.85 | $6,000 | $7,352.64 | $112,347.49 |
| 13 | $112,347.49 | $6,000 | $8,317.9 | $126,665.39 |
| 14 | $126,665.39 | $6,000 | $9,352.94 | $142,018.34 |
| 15 | $142,018.34 | $6,000 | $10,462.81 | $158,481.15 |
| 16 | $158,481.15 | $6,000 | $11,652.91 | $176,134.06 |
| 17 | $176,134.06 | $6,000 | $12,929.04 | $195,063.09 |
| 18 | $195,063.09 | $6,000 | $14,297.42 | $215,360.51 |
| 19 | $215,360.51 | $6,000 | $15,764.72 | $237,125.23 |
| 20 | $237,125.23 | $6,000 | $17,338.1 | $260,463.33 |
— Contributions vs growth
Download— How it works
FV = PV(1 + i)^n + PMT · [((1 + i)^n − 1) ÷ i]; i = (return − fee) ÷ periods
How this works
Dollar-cost averaging means investing a fixed amount on a regular schedule — weekly, monthly, whatever suits — instead of trying to time the market. This calculator projects that plan forward: it grows your starting amount and every contribution at the expected return you set, and splits the result into what you put in versus what growth added.
Because there is no live price feed, the expected return is yours to choose, and it is the single biggest assumption. The projection grows smoothly at that rate; real markets do not, so treat the figure as a central estimate rather than a promise.
Worked example — $500 a month for 20 years at 7%, nothing to start: You contribute 240 × $500 = $120,000. The projected balance is about $260,000 — so roughly $140,000 is growth, more than the amount you paid in.
The advanced options
Everything beyond the core plan is optional and safely defaulted, so a quick estimate needs none of it. A fee or expense ratio is subtracted straight from the return — even 0.5% a year is a real drag over decades. An annual step-up raises your contribution each year to track a rising income, which lifts the end balance more than it first appears.
Inflation converts the headline into today’s purchasing power; tax trims the growth for an after-tax view; and a dividend yield lets you model income separately if your return figure is price-only — reinvested it compounds, or taken as cash it is reported on the side.
Dollar-cost averaging vs a lump sum
Spreading money in over time is how most people invest from a salary, and it removes the pressure of picking a moment to buy. It is worth knowing, though, that if you already hold the full amount, investing it all at once has historically beaten drip-feeding it more often than not — simply because the money spends longer in the market.
Dollar-cost averaging’s real value is behavioural and risk-related: steady, automatic investing you actually stick with, and less exposure to one unlucky entry point.
— Reader questions
What is dollar-cost averaging?
Investing a fixed amount on a regular schedule regardless of price. It removes market timing from the decision and is how most people invest from income. This calculator projects such a plan at an expected return you choose.
What return should I use?
One that matches your investments. Broad global stock markets have returned very roughly 7–10% a year before inflation over the long run; bonds and cash less. Try a cautious figure as well as an optimistic one — the result is only as good as this assumption.
How does the fee / expense ratio affect the result?
It is subtracted directly from the expected return, so a 7% return with a 0.5% fee compounds at 6.5%. Over decades that small gap removes a surprisingly large slice of the final balance — which is why low-cost funds matter.
Should I reinvest dividends?
If your expected return already includes dividends (a total-return figure), leave the dividend yield at zero. If your return is price-only, add the yield: reinvested it compounds into the balance; taken as cash it is reported separately and does not grow.
Is dollar-cost averaging better than investing a lump sum?
For money arriving from income, DCA is simply how investing happens. If you already have a lump sum, investing it all at once has historically won more often, because it is exposed to growth sooner — but DCA reduces the risk of buying everything at a peak.
Does this use real market prices?
No. It grows your contributions at a steady expected return rather than a volatile price path, so it is a smooth projection. Real returns vary year to year, so treat the output as an estimate, not a forecast.