Dollar Cost Averaging Calculator
Plan your regular investment contributions with dollar cost averaging. See how investing consistently over time can build wealth and reduce risk.
Dollar Cost Averaging Plan
Your DCA Results
Final Portfolio Value
$91,473
Total Invested
$60,000
Investment Gain
$31,473
Total Contributions
120 payments
Dollar Cost Averaging Calculator
Plan your investment strategy by investing a fixed amount regularly, regardless of market conditions. This is the #1 strategy recommended for beginning investors!
What is Dollar Cost Averaging (DCA)?
DCA means investing the same amount of money at regular intervals (like $100 every month). This strategy:
- Reduces the impact of market volatility
- Removes emotion from investing
- Builds wealth steadily over time
- Works even if you don’t have a lump sum to invest
How to Use This Calculator
- Investment Amount: How much will you invest each period?
- Frequency: How often? (Weekly, monthly, quarterly)
- Expected Return: Average annual return you expect (8-10% is historical average for stocks)
- Time Period: How long will you keep investing?
Why DCA Works
When prices are high, your fixed amount buys fewer shares. When prices are low, it buys more shares. Over time, this averages out your cost!
Example: Investing $500/month for 10 years at 8% return = $91,000+ (you only invested $60,000!)
Category
Investment Returns & Growth