Dollar Cost Averaging Calculator (DCA)

Use our Dollar Cost Averaging (DCA) Calculator to estimate the average cost of your investments over time. Ideal for recurring investors, it helps you understand how regular investments can reduce the impact of market volatility.

Investment Information
$
Yrs
Mos
Total: 60 months
%

About Dollar Cost Averaging

Reduces Emotional Investing: Automates purchases regardless of market conditions.

Lowers Average Cost: You buy more shares when prices are low and fewer when high.

Simplifies Investing: Set up automatic investments and forget about timing the market.

Flexible: Can be used with any investment amount and frequency.

Risk Management: Spreads investment risk over time rather than lump-sum investing.

Taxable Accounts: Each purchase has its own cost basis for capital gains calculation.

Tax-Loss Harvesting: DCA creates opportunities to offset gains with losses.

Retirement Accounts: 401(k) and IRA accounts grow tax-deferred or tax-free.

Dividends: Reinvested dividends create new tax lots in taxable accounts.

Wash Sale Rule: Be mindful when selling at a loss and repurchasing similar securities.

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Historical US Market Returns
Asset Class 10-Year CAGR Volatility
S&P 500 10.7% 15.6%
NASDAQ 14.2% 20.3%
US Bonds 4.1% 4.7%
Real Estate 8.9% 12.8%
Gold 5.3% 16.2%
Returns as of July 5, 2025. Past performance is not indicative of future results.
DCA Examples ($)

For 30 years at 7%:

  • Invested: $36,000
  • Portfolio Value: $113,000
  • Returns: $77,000

For 20 years at 8%:

  • Invested: $347,000
  • Portfolio Value: $1.12M
  • Returns: $773,000

For 15 years at 10%:

  • Invested: $190,000
  • Portfolio Value: $447,000
  • Returns: $257,000
DCA Investment Strategies
  • 1. Automate investments with broker recurring purchases
  • 2. Focus on low-cost index funds or ETFs
  • 3. Increase amounts with salary raises
  • 4. Combine with dividend reinvestment (DRIP)
  • 5. Stay consistent through market cycles