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DCA calculator (dollar-cost averaging)

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DCA is a style of investment with equal recurring contribution, e.g.,
monthly recurring investment over a long period of time.
Consistency is key in the success of DCA.

DCA investing offers several advantages, such as,

  1. Reduce volatility risk.
    Many investors wait to buy low but no one can predict the market.
    DCA helps average your investing capital over volatility of a market.
  2. Minimize opportunity loss due to market timing.
    Time in the market is more important than timing the market.
  3. Build investment discipline. DCA investors can decide an invesment pattern that suits them best.
    For example, every month on payday.
  4. Reduce market anxiety and over-thinking.
    Because DCA helps eliminate emotional reactions from market actions.
  5. Last but not least, DCA in an asset with consistent performance over the long term
    allows better estimation of the investment outcome.
    For example, monthly investment of $1250 in S&P500 ETF over a 20-year period would lead to $1 million
    (based on 11% annual return rate from 01/2010 to 01/2020).

Try simulate your DCA plan using our tool here.

May your financial health be as strong as ever.

Variables and result
e.g. 10000, 100000.
e.g. 500, 1000.
e.g. 3%, 5%, 10%.
e.g. 5 years, 10 years.

DCA is a simple investment style, re-investing in a well selected asset.
Discipline, compound interest, and investment horizon are drivers for growth.
Its effectiveness could surprise even veteran investors.
* Given the selected asset produces a consistent return over a target period.

Recommend ! Track your portfolio with Portseido

(Asset this year end) = (Asset previous year end) * (1 + Annual return) + 12 * (Monthly investment) * (1 + (Annual return)/2)
Asset from previous year grows according to the annual return rate, where cumulative monthly investment throughout the year grows at half the rate.