The market rewards
those who stay.
Dollar-cost averaging turns ordinary monthly savings into extraordinary wealth. No market timing. No guesswork. Just the unstoppable power of compounding over time.
Avg. S&P 500 CAGR
5.8%
$500/mo × 20 yrs
$376K+
vs. Cash savings
3.1× more
Example Scenario
$500/month · S&P 500 · Starting 2006
Portfolio Value
$375,772
Return
+212%
Gain
+$255K
CAGR
5.8%
Customize your numbers in the calculator below ↓
DCA Calculator
Adjust the sliders to model your own scenario. Every calculation uses real historical price data — real crashes, real recoveries, real results.
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Frequently Asked Questions
What is Dollar-Cost Averaging (DCA)?
Dollar-cost averaging is the practice of investing a fixed dollar amount at regular intervals — typically monthly — regardless of the asset's price. When prices are low, your fixed amount buys more shares. When prices are high, it buys fewer. Over time this averages out your cost basis and removes the emotional burden of trying to time the market.
Is DCA better than lump-sum investing?
Research shows lump-sum investing outperforms DCA about two-thirds of the time in rising markets, because money invested earlier benefits from more compounding. However, DCA is the superior practical strategy for most investors — few people have a large lump sum available, and DCA builds discipline while protecting against the catastrophic risk of investing all capital at a market peak.
How accurate is this calculator?
This calculator uses synthetic price data calibrated to S&P 500 historical returns. It is intended for educational purposes only and should not be used to make investment decisions. Past performance does not guarantee future results. See our Methodology page for full details.
Does this include dividends?
The current data represents price returns only (not total return with dividends reinvested). S&P 500 total return has historically been roughly 2–3 percentage points higher per year than price return alone — meaning actual DCA results with dividend reinvestment would be considerably better than shown here.
How much should I invest each month?
A common rule of thumb is to invest 15–20% of your monthly income. But even starting with $100/month makes a meaningful difference over decades. The key is consistency — missing months compounds negatively just as investing consistently compounds positively. Start with what you can and increase over time.