What is dollar-cost averaging?

Dollar-cost averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals — regardless of asset price. This reduces the impact of volatility because you buy more shares when prices are low and fewer when prices are high, lowering your average cost per share over time.

What formula does this calculator use?

For each compounding period the calculator applies FV = P × (1+r)^n + PMT × [(1+r)^n − 1] / r, where P is the current portfolio value, r is the per-period rate (annual rate divided by periods per year), n is 1 (one period at a time), and PMT is the periodic contribution. This compounds the existing balance and adds the new contribution each period.

How is average cost per share calculated?

At each contribution the calculator divides the contribution amount by the current simulated price. Price grows at the same expected annual rate, so early contributions buy more shares at lower prices and later ones buy fewer at higher prices — exactly how real DCA works. Average cost per share is total invested divided by total shares accumulated.

Does this account for taxes or fees?

No. This calculator shows pre-tax, pre-fee nominal returns. Brokerage commissions, fund expense ratios, dividend taxes, and capital gains taxes are not included. Subtract expected fees from the annual return rate to get a more conservative estimate.

What is a realistic expected annual return?

Broad US stock market index funds have historically averaged roughly 7–10% annually in real terms over long periods. Individual stocks, crypto, and emerging markets carry higher potential returns but also higher risk. Use 6–8% for conservative planning, 10–12% for moderate scenarios.

Why does contribution frequency matter?

More frequent contributions compound slightly faster because each deposit starts earning returns sooner. Weekly investing at the same annual total will produce a marginally higher final value than quarterly investing, and the difference grows with a higher return rate and longer duration.

DCA Calculator (Dollar-Cost Averaging)

Name: DCA Calculator (Dollar-Cost Averaging)
Availability: InStock
Author: Nham Vu

Enter your initial investment, contribution amount, frequency, duration, expected return, and starting price to see total portfolio value, shares accumulated, and year-by-year growth.

DCA Parameters

Initial Investment ($)

One-time lump sum at start (enter 0 if none)

Regular Contribution ($)

Contribution Frequency

Investment Duration

years

Expected Annual Return

Starting Asset Price ($)

Used to calculate shares / units accumulated

Enter your DCA parameters and click Calculate

Portfolio growth chart and year-by-year table will appear here

Total Portfolio Value

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Total Invested

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Total Gain

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Shares Accumulated

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Avg Cost / Share

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Invested Returns

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Portfolio Value Growth

Portfolio Value Total Invested

Year-by-Year Breakdown

Year	Total Invested	Portfolio Value	Gain

Summary

Enter your initial investment, contribution amount, frequency, duration, expected return, and starting price to see total portfolio value, shares accumulated, and year-by-year growth.

How it works

Enter your initial investment, periodic contribution, frequency, duration, expected annual return, and starting asset price. The calculator simulates each contribution period — growing the existing balance and adding the new contribution — then outputs all key metrics and a chart.

Use cases

An investor planning to invest $500 per month into an index fund to see projected wealth after 20 years.
A crypto holder estimating how many coins they accumulate buying $100 weekly over 3 years.
A retirement planner comparing weekly vs. monthly contribution schedules at the same annual total.
Anyone wanting to visualize the compounding effect of consistent, periodic investing over time.
A financial advisor showing clients how dollar-cost averaging reduces average cost per share in volatile markets.

Frequently Asked Questions

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Last updated: 2026-05-23 · Reviewed by Nham Vu