DCA Calculator

Cash-flow model

Dollar-cost averaging does not invest one lump sum all at once. It adds a fixed amount weekly, monthly, or quarterly. Each contribution compounds over the remaining periods after it enters the model.

Earlier contributions have more time to grow, while later contributions have shorter growth windows. The final value is the sum of all contributions plus their modeled returns.

Inputs

• Contribution per period: the amount invested each interval.
• Contribution frequency: weekly, monthly, or quarterly.
• Annual return: the long-term return assumption used for the scenario.
• Investment period: how long contributions and compounding continue.

Useful scenarios

DCA models are useful for paycheck-based investing, fund contributions, retirement additions, and long-term savings plans. They help compare the effect of investing more each month or extending the investment period.

Example

If you invest 3,000 every month, assume an 8% annual return, and continue for 30 years, the calculator shows total principal, modeled investment gain, and final value. The model uses a smoothed return and does not capture real market return sequence.

Important limitation

DCA can reduce timing pressure, but it does not remove market risk. This page and calculator are for estimation only and do not constitute investment advice.