Dollar-Cost Averaging Calculator

What it does

Simulates investing a fixed amount every period into a moving share price. Because the same dollars buy more shares when the price is low and fewer when it's high, your average cost per share ends up below the average price over the period. The tool shows shares accumulated, that average-cost advantage, the ending value, and a side-by-side with investing the whole sum up front (lump sum).

Who this helps

Anyone auto-investing a fixed amount each paycheck into an index fund or ETF — the default for most 401(k) and SIP investors. It's also useful when you have a lump sum and are weighing investing it gradually versus all at once.

How to use it

1. Set your per-period investment and how often you invest.
2. Pick a market scenario — or choose Custom and dial in the average return and how choppy the ride is.
3. Read the average-cost-vs-average-price gap and the DCA-vs-lump-sum comparison.

What it doesn't do

The price path is an illustrative, smooth scenario — real markets are random, and DCA's edge depends entirely on the path. In a steadily rising market, lump-sum usually wins because time in the market beats timing; DCA's advantage shows up in flat, choppy, or falling-then-recovering markets. This is an illustration, not a prediction.