Dollar-cost averaging means investing a fixed amount on a regular schedule, regardless of price. Enter your contribution amount, frequency, expected return, and time horizon to project how your investment could grow.
How It’s Calculated
Each contribution is assumed to grow at your expected annual return, compounded once per contribution period. Future Value = Contribution × (((1 + r)^n − 1) ÷ r), where r is the return rate per period and n is the total number of contributions (frequency × years).
A Note on Assumptions
This calculator assumes a constant contribution amount and a constant annual return — real markets fluctuate, and dollar-cost averaging’s real benefit is reducing the impact of that volatility on your average purchase price, which a single assumed return rate can’t fully capture.
Worked Example
Say you invest $300 every month (12 times a year) for 15 years, earning an average 7% annual return. You’d invest $54,000.00 in total, and end up with $95,088.69 — $41,088.69 of that from investment growth.
FAQ
What does “frequency” mean in this calculator?
It’s how many times per year you contribute — 12 for monthly, 4 for quarterly, 52 for weekly, and so on.
Does dollar-cost averaging guarantee better returns than investing a lump sum?
No. Historically, investing a lump sum immediately tends to outperform DCA on average, since markets rise more often than they fall. DCA’s main benefit is reducing the emotional and timing risk of investing a large sum all at once.
What if the market goes down during my investment period?
This calculator assumes a constant average annual return, so it won’t show the effect of a downturn along the way — in real markets, DCA can help by buying more shares when prices are lower.
Can I model an existing lump sum plus ongoing contributions?
Not directly with this calculator — for a starting balance plus regular contributions, use our Compound Interest Calculator instead.