Finance & Money
Dollar-Cost Averaging Calculator
Compound an opening investment with equal end-of-month contributions, separate contributed capital from modeled growth, and use the entered average share price only as a transparent share-count reference.
Projected ending value-
Total capital contributed-
Modeled investment growth-
Shares represented by contributed cash at average price-
Projected value per modeled contributed share-
Growth share of ending value-
Decision view
Recurring-investment growth path
Recurring-investment growth pathMonth is shown against modeled value, contributed capital, and modeled growth.
Exact scenario comparisonMonthly investment changes while all other entered assumptions remain constant.
| Monthly investment | Projected ending value | Total capital contributed | Modeled investment growth | Shares represented by contributed cash at average price | Projected value per modeled contributed share | Growth share of ending value |
|---|
Period-by-period detail
Dollar-cost averaging contribution schedule
How to use Dollar-Cost Averaging Calculator
- Choose a contribution that can continue through weak markets.
- Treat the return as a scenario rather than a forecast.
- Review the balance path together with cumulative contributions.
Calculator guide
Understanding Dollar-Cost Averaging Calculator
Dollar-cost averaging describes a contribution schedule; it does not guarantee a favorable average purchase price or eliminate market risk.
Calculation method
How the calculation works
Model dollar-cost averaging with an initial investment and equal end-of-month contributions while separating contributed capital, growth, and the average-price share reference. Add the same contribution each month, compound at the entered constant annual return, and divide total contributed cash by the entered average purchase price for an illustrative share count.
Contribution discipline
Separate what the investor controls from what the market controls
The monthly schedule is controllable; price and return are not.
Worked situations
Practical examples
- Equal dollar purchases acquire more shares when prices are lower and fewer when prices are higher.
- A constant return does not reproduce that changing purchase-price path.
- Pausing contributions during declines can defeat the intended discipline.
Better inputs
Useful tips
- Automate the schedule.
- Keep transaction fees and account limits in view.
- Compare DCA with investing an available lump sum as a separate decision.
Before relying on the result
Limitations and common mistakes
- Market volatility, exact purchase prices, distributions, taxes, fees, and sequence effects are omitted.
- The average price is entered, not derived from a price series.
- Positive modeled growth is not guaranteed.
Reference
Key terms
- Dollar-cost averaging
- Investing a fixed dollar amount on a recurring schedule.
- Contributed capital
- Opening investment plus recurring deposits.
- Modeled growth
- Projected ending value above contributed capital.
- Share reference
- Illustrative shares represented by cash at the entered average price.
Important note
Calculated from the entered values and stated financial terms. It is not a product quote, lending decision, tax filing, or investment recommendation.
Frequently asked questions
Does DCA always outperform lump-sum investing?
No.
Is the average share price calculated from market data?
No, it is entered as an illustration.
When are contributions made?
At the end of each modeled month.
Can the model show a loss?
Yes, if a sufficiently negative return is entered.