Dollar Cost Averaging
Calculator
Results
- Ending balance
- $15,528.23
- Total contributions
- $12,000.00
- Investment growth
- $3,528.23
Annual contribution and balance projection
| 0 | 0.00 | 0.00 | 0.00 |
| 1 | 1,200.00 | 27.89 | 1,227.89 |
| 2 | 2,400.00 | 118.59 | 2,518.59 |
| 3 | 3,600.00 | 275.33 | 3,875.33 |
| 4 | 4,800.00 | 501.49 | 5,301.49 |
| 5 | 6,000.00 | 800.61 | 6,800.61 |
| 6 | 7,200.00 | 1,176.43 | 8,376.43 |
| 7 | 8,400.00 | 1,632.87 | 10,032.87 |
| 8 | 9,600.00 | 2,174.05 | 11,774.05 |
| 9 | 10,800.00 | 2,804.32 | 13,604.32 |
| 10 | 12,000.00 | 3,528.23 | 15,528.23 |
Formula
Bₙ₊₁ = Bₙ × (1 + r ÷ f) + C- initial
- 0.00
- contribution
- 100.00
- annual_return
- 0.05
- periods
- 120
= 15528.23
Note
This projection assumes a constant return and equal contributions at the end of each period. Actual market returns, fees, taxes, and contribution timing will differ.
More in Financial
See all →Frequently asked questions
How does dollar-cost averaging affect my average purchase price?+
By investing a fixed amount at regular intervals, you automatically buy more shares when prices are low and fewer when prices are high, which tends to lower your average cost per share compared to investing the same total amount at a single random point.
Does dollar-cost averaging guarantee better returns than investing a lump sum?+
No. Historically, investing a lump sum immediately has outperformed dollar-cost averaging more often than not, because markets tend to rise over time. DCA's main benefit is reducing timing risk and emotional stress, not maximizing expected return.
How does the calculator determine total shares accumulated?+
It divides each periodic contribution by that period's share price to get shares bought, then sums all the periods together, so the total reflects the actual number of shares your combined contributions would have purchased.
Why does DCA work best in volatile or declining markets?+
When prices swing up and down or trend downward before recovering, fixed periodic purchases buy disproportionately more shares at the lower prices, which can improve your average cost basis versus a single lump-sum entry at an unlucky high point.
Should I stop dollar-cost averaging once I've built a large position?+
That depends on your goals, but many investors continue DCA through retirement contributions as an ongoing discipline rather than a one-time strategy, since it also removes the temptation to guess short-term market direction.