Dollar-Cost Averaging Calculator

Historically, lump-sum investing outperforms DCA more often than not, because markets tend to rise over time — money invested sooner has more time to grow. This calculator assumes a steady return, which is why lump sum wins here; DCA's real advantage is reducing regret risk (bad timing), not maximizing expected return.

DCA reduces the emotional and practical risk of investing a large sum right before a downturn. It's also simply how most people invest by necessity — through regular paycheck contributions — rather than a deliberate strategy chosen over a lump sum.

No — it assumes a constant annual return for both strategies, which is a simplification. In real markets with volatility, DCA can sometimes outperform lump sum if the market drops significantly during the averaging period.