DCA vs Lump Sum Calculator
Compare dollar cost averaging (DCA) to lump sum investing. See which strategy wins given your return assumptions and time horizon.
What is dollar cost averaging?
Dollar cost averaging (DCA) means investing a fixed amount at regular intervals rather than all at once (lump sum). When markets are rising, lump sum typically wins because all your money is working from day one. DCA shines when markets decline — you buy more shares at lower prices, reducing your average cost. For equal expected returns, lump sum is mathematically superior since money has more time in the market. This calculator lets you compare both strategies side by side.
How it works: Enter a lump sum amount, a monthly DCA amount, and an expected annual return. The calculator projects both strategies over the same period. Use the "Same total invested" button to invest the same total amount with each approach for a fair comparison.
DCA vs Lump Sum Calculator — Dollar Cost Averaging Comparison
Free DCA vs lump sum calculator. Compare dollar cost averaging to lump sum investing with interactive charts, month-by-month breakdown, and scenario saving.
Same total invested via DCA: $1,000/mo
Growth Over Time: Lump Sum vs DCA
Final Value Comparison
Month-by-Month Breakdown
| Month | Lump Sum Balance | DCA Balance | Difference |
|---|---|---|---|
| 1 | $10,058 | $1,006 | $9,052 |
| 2 | $10,117 | $2,018 | $8,099 |
| 3 | $10,176 | $3,035 | $7,141 |
| 4 | $10,235 | $4,059 | $6,176 |
| 5 | $10,295 | $5,088 | $5,207 |
| 6 | $10,355 | $6,124 | $4,231 |
| 7 | $10,416 | $7,165 | $3,251 |
| 8 | $10,476 | $8,213 | $2,263 |
| 9 | $10,537 | $9,267 | $1,270 |
| 10 | $10,599 | $10,327 | $272 |