Dollar-Cost Averaging Calculator
Project the value of regular fixed investments.
e.g. monthly rate = annual / 12
Results update as you type.
How it works
Dollar-cost averaging, or DCA, means investing a fixed amount at regular intervals regardless of price, and this calculator projects what those contributions could grow to. You enter the amount you invest each period, the number of periods, and the expected return per period, and it returns the projected future value, the total you invested, and your total gain. The math is the future value of an annuity: each contribution earns compounding returns for however many periods remain, and summing them gives the total. Be sure the rate matches the period, so for monthly investing use the monthly return, roughly the annual rate divided by twelve. DCA is popular because it removes the temptation to time the market: by investing steadily, you buy more shares when prices are low and fewer when they are high, smoothing your average cost and reducing the risk of investing a lump sum right before a downturn. It also builds a disciplined saving habit. This projection assumes a constant return each period, which real markets do not deliver, so treat it as an illustration of compounding rather than a forecast; actual returns vary and can be negative. It also excludes fees and taxes. Seeing the total invested next to the future value highlights how much growth comes from compounding. Enter your contribution, periods, and rate to project your DCA outcome.
FV = PMT × ((1 + r)^n − 1) / r
The future value of regular equal investments is the future value of an ordinary annuity: the periodic amount times the quantity one plus the rate raised to the number of periods, minus one, all divided by the rate. Each contribution compounds for the remaining periods. When the rate is zero, the value is simply the amount times the number of periods.
Source:Investment analysis
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter amount per period, number of periods and return per period.
- 2
Adjust the options
Fine-tune any options to match your situation.
- 3
Read your result
Future value updates instantly as you type — no button to press.
Frequently asked questions
What is dollar-cost averaging?
Dollar-cost averaging is investing a fixed amount of money at regular intervals, such as monthly, regardless of the asset's price. It automatically buys more shares when prices are low and fewer when high, smoothing your average purchase price and reducing the risk of poorly timing a single large investment.
How is the future value calculated?
It uses the future value of an annuity formula: each periodic contribution compounds for the periods remaining until the end. The calculator sums all contributions and their growth. Make sure your return rate matches your period, using the monthly rate for monthly investing, which is roughly the annual rate divided by twelve.
What rate should I enter?
Enter the expected return for one period, matching how often you invest. For monthly contributions, use a monthly rate, approximately the expected annual return divided by twelve. For annual contributions, use the annual rate. Using an annual rate with monthly periods, or vice versa, would give a badly wrong projection.
Is dollar-cost averaging better than lump-sum investing?
It depends. Lump-sum investing has historically outperformed on average because markets tend to rise over time, so money invested sooner grows longer. But dollar-cost averaging reduces the risk and regret of investing everything just before a drop, and it suits investors saving from income rather than deploying a lump sum. Both are valid strategies.
Does this account for market ups and downs?
No, the projection assumes a steady return every period, which real markets never deliver. Actual returns vary and some periods are negative. The calculator illustrates the power of regular investing and compounding under a constant-return assumption, but real outcomes will differ. It also excludes fees and taxes that reduce real returns.