Investment DCA Calculator

Calculate future portfolio value with dollar-cost averaging (DCA) strategy

Investment Details

Initial Investment(USD)

Monthly Investment(USD)

Expected Annual Return

Investment Period

Future Portfolio Value

$2,424,058,788.79

Total Growth

$24,058,788.79

Total Invested

$2,400,000,000.00

Return on Investment

1.0%

Portfolio Growth Over Time

Value Breakdown

Our dollar-cost averaging (DCA) calculator shows how regular monthly investments can grow your portfolio over time. DCA is a proven strategy that reduces risk by investing consistently regardless of market conditions.

What is calculators.investment-dca-calculator.title?

Dollar-cost averaging (DCA) is an investment strategy where you invest a fixed amount regularly (e.g., monthly) regardless of asset price. This approach reduces the impact of market volatility and eliminates the need to time the market.

DCA helps you buy more shares when prices are low and fewer when prices are high, averaging out your purchase price over time. It's particularly effective for long-term investors who want to build wealth gradually.

This calculator projects your portfolio value using DCA, showing how consistent monthly investments grow with compound returns. It's ideal for planning retirement savings, building investment portfolios, or any long-term wealth-building goal.

How to Use This Calculator

1
Initial Investment
Enter any starting investment amount. Can be $0 if starting from scratch.
Tip: Even small initial investments benefit from compound growth over time.
2
Monthly Investment
Enter your planned monthly investment amount. Consistency is key to DCA success.
Tip: Start with what you can afford and increase over time as your income grows.
3
Expected Annual Return
Input your expected annual return percentage. Historical stock market average is 7-10% over long periods.
Tip: Use conservative estimates (6-7%) for planning. Actual returns will vary year to year.
4
Investment Period
Enter how many years you plan to invest. Longer periods allow more time for compound growth.
Tip: Time is your greatest asset in investing. Starting early makes a huge difference.

Result: You'll see your future portfolio value, total growth, total invested amount, return on investment percentage, and charts showing portfolio growth and value breakdown over time.

How the Calculation Works

DCA uses compound interest formulas to project portfolio growth, accounting for both initial investment and regular monthly contributions.

FV = P(1+r)^n + PMT × [(1+r)^n - 1] / r

Variables:

FV= Future portfolio value
P= Initial investment
PMT= Monthly investment amount
r= Monthly return rate (annual ÷ 12)
n= Number of months

Important Assumptions:

Returns compound monthly
Consistent monthly investments
No withdrawals during period

Practical Examples

Example: Retirement Savings with DCA

Starting at age 30, investing $500/month in a retirement account earning 7% annually until age 65.

Inputs:

Initial: $0
Monthly: $500
Return: 7%
Years: 35

Interpretation: After 35 years, your portfolio would be worth approximately $820,000. You'd have invested $210,000 total ($500 × 420 months) but earned $610,000 in returns! This shows the incredible power of consistent investing over long periods.

When Should You Use This Calculator?

•Planning retirement savings
•Building investment portfolios
•Understanding DCA strategy benefits
•Projecting long-term wealth growth

Limitations and Things to Keep in Mind

Returns are not guaranteed and vary year to year

Does not account for taxes on investment gains

Assumes consistent monthly investments

Market downturns can reduce portfolio value

Frequently Asked Questions (FAQs)

What is dollar-cost averaging?

DCA is investing a fixed amount regularly regardless of asset price. It reduces risk by averaging purchase prices and eliminates the need to time the market.

Is DCA better than lump sum investing?

For most investors, DCA reduces risk and emotional stress. Lump sum investing may have slightly higher expected returns but requires perfect market timing, which is nearly impossible.

What return rate should I use?

For stocks, historical average is 7-10% over long periods. Use 6-7% for conservative planning. Bonds average 3-5%. Your actual returns will vary significantly year to year.