Dollar-Cost Averaging (DCA) Calculator

Dollar-Cost Averaging (DCA) Calculator iInvesting a fixed dollar amount on a regular schedule, e.g. $500 every month into the same fund.

Load context from a stock ticker iDCA doesn't take ticker-specific inputs (no price, no dividend), so the ticker autofill on this page is informational only - it shows you context like price and yield, but does not change your inputs. — Prices and dividends come from the same public feed used across YieldChampion. Refresh re-fetches on demand. — DCA's math (monthly amount * return * years) doesn't need a stock price. The ticker info is shown for context only - your form values stay manual.

Loading a ticker shows live price and yield for context. DCA inputs stay manual until historical-series autofill ships.

Future value iTotal projected value at the end: every contribution plus all the growth those contributions earned along the way.: -
Total contributed iSum of every monthly contribution you'll make over the period. The pure 'out of pocket' number, before any growth.: -
Growth iFuture value minus total contributed. The dollars the market produced for you, on top of what you put in.: -
Methodology & full breakdown

Formula

FV = c · [((1 + r/12)^(12y) - 1) / (r/12)] (ordinary annuity, end-of-month contributions). When r = 0: FV = c · 12 · y.

Inputs & sources

Monthly contribution
Manual entry. Loaded ticker (if any) is informational only - it does not affect this calculation in Phase A.
Annual return %
Manual entry. Loaded ticker (if any) is informational only - it does not affect this calculation in Phase A.
Years
Manual entry. Loaded ticker (if any) is informational only - it does not affect this calculation in Phase A.

Modeling assumptions

  • Contributions made at end of each month.
  • Constant annual return (no return sequence; no volatility model).
  • No transaction costs, no taxes.

Limitations

  • Phase A: ticker autofill is informational only. Full historical-series DCA requires /api/history (deferred).
How It Works - How does dollar-cost averaging work?

Dollar-Cost Averaging (DCA) is the practice of investing a fixed dollar amount on a regular schedule, regardless of whether the market is up or down. The result is that you automatically buy more shares when prices are low and fewer when prices are high - your average cost basis ends up below the simple average price.

This calculator uses the standard ordinary-annuity formula: future value = monthly contribution * [((1 + r/12)^(12*years) - 1) / (r/12)]. When the rate is zero, the formula collapses to monthly * 12 * years - simply the total of all your contributions.

Numerical example: $500 a month for 30 years at a 7% nominal annual return lands near $610,000. Of that, you contributed $180,000 ($500 * 12 * 30); compounding produced the other $430,000.

DCA is psychologically powerful. It removes the "should I time this?" decision and ensures you keep buying through bear markets - which is when forward returns are typically highest. The behavioral benefit usually outweighs the marginal mathematical penalty of not lump-summing in a rising market.

The calculator assumes contributions are made at the end of each month. Real brokerage automation often hits a different day of the month or has a small lag, but the difference is rarely material over 10+ year horizons.

Not financial advice. For informational and educational purposes only. Numbers come from public market data and may be stale. Always consult a licensed financial advisor before making investment decisions.