Dollar-Cost Averaging Calculator
Simulate regular monthly investing over time. See how your portfolio grows vs. your total contributions.
Final Portfolio Value
$296,473.61
Total Invested
$120,000.00
Total Returns
$176,473.61
Return %
+147.1%
How This DCA Calculator Works
This dollar-cost averaging calculator models monthly investing using future value of annuity math. Each monthly contribution is assumed to grow from the month it's invested at the specified annual return rate (converted to a monthly rate). The final value accounts for both principal growth and the compounded return on every contribution.
The formula used is: FV = PMT × [(1+r)^n − 1] / r × (1+r) + PV × (1+r)^n, where PMT is the monthly contribution, r is the monthly interest rate (annual rate ÷ 12), n is the total number of months, and PV is any initial lump-sum investment.
The chart shows two lines: the solid area represents your cumulative cash contributions, and the green line shows your actual portfolio value — the gap between them is your total return. In the early years the lines are close together; over time the return gap widens dramatically as compound growth accelerates.
For realistic projections, use a conservative return rate assumption. The S&P 500 has historically returned approximately 10% nominal or 7% inflation-adjusted annually. For mixed portfolios with bonds, 5–6% is more realistic. For high-yield savings or CDs, use 4–5%. Running multiple scenarios at different rates gives you a useful range of outcomes.