DCA vs Lump Sum Calculator

Invest it all at once, or spread it over months? Compare both approaches side by side on a rising market.

Inputs

Currency

Amount to invest ({currency}) Spread over (months) Expected annual return (%) Total horizon (years)

Results

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How this calculator works

Both paths are simulated month by month at the same steady return. Because the model assumes markets only ever go up, the lump sum always wins — money that is in the market earns for longer. That is also what the historical data mostly shows.

So why does anyone use DCA? Because this model has no volatility and no human being in it. Spreading purchases reduces the pain of investing everything the day before a crash, and it is what most people can actually stick to. The number below is the price of that comfort, not proof that DCA is a mistake.