// INVESTMENT_STRATEGY
Dollar-Cost Averaging
Calculator
Compare DCA vs lump sum investing over your time horizon. See how regular monthly investments smooth out market volatility and stack up against investing a large sum upfront.
// INVESTMENT_SETUP
Configure your investment strategy
Monthly investment$500
Investment period20 years
Expected annual return8.0%
Inflation rate2.5%
// LUMP_SUM_COMPARISON
Compare against a one-time investment
Lump sum amount$120,000
Auto-calculated as monthly × 12 × years, but editable
💡 How it works: Lump sum invests the full amount on Day 1, while DCA spreads it monthly. This calculator shows which strategy works better in your scenario.
DCA final balance
$294,510
vs $591,216 lump sum • $179,731 in today's dollars
Total invested
$120,000
via monthly contributions
Total gains
$174,510
145.4% return
Lump sum advantage
$296,706
difference in outcome
DCA breakdown41% invested · 59% growth
// DCA_VS_LUMP_SUM
Dollar-Cost Averaging
Final balance$294,510
Total gains$174,510
Gain %145.4%
Lump SumWINNER
Final balance$591,216
Total gains$471,216
Gain %392.7%
💡 Key Insight
In a steadily rising market, lump sum investing historically wins by 50.19% because your money spends more time invested and compounds longer. However, DCA's strength is reducing the risk of buying at a peak — it's a discipline tool and risk smoothing strategy.
// YEAR_BY_YEAR
Detailed comparison (sampled annually)
| Year | DCA Balance | Lump Sum Balance | DCA Invested | DCA vs LS |
|---|---|---|---|---|
| 2 | $12,967 | $140,747 | $12,000 | $127,780 |
| 4 | $28,175 | $165,080 | $24,000 | $136,905 |
| 6 | $46,013 | $193,620 | $36,000 | $147,608 |
| 8 | $66,934 | $227,095 | $48,000 | $160,161 |
| 10 | $91,473 | $266,357 | $60,000 | $174,884 |
| 12 | $120,254 | $312,407 | $72,000 | $192,153 |
| 14 | $154,011 | $366,418 | $84,000 | $212,407 |
| 16 | $193,605 | $429,767 | $96,000 | $236,163 |
| 18 | $240,043 | $504,069 | $108,000 | $264,026 |
| 20 | $294,510 | $591,216 | $120,000 | $296,706 |
General information only. This calculator uses a simplified constant-return model. Real markets are volatile — actual DCA vs lump sum outcomes vary based on market timing, asset allocation, and your personal circumstances. Past performance is not indicative of future results. This is not financial advice.