DCA Calculator
Compare Dollar Cost Averaging against Lump Sum investing to find the best strategy for you
DCA vs Lump Sum Comparison
Lump Sum Investing
$13,257.00
Return: 10.47%
Worst case: $4,513.00
Dollar Cost Averaging
$12,670.00
Return: 5.59%
Worst case: $7,348.00
Strategy with higher returns
Lump Sum
Difference: $586.00
Dollar Cost Averaging Explained
Dollar cost averaging (DCA) is the practice of investing a fixed amount at regular intervals, regardless of market conditions. Instead of trying to time the market, you buy consistently — purchasing more shares when prices are low and fewer when prices are high.
When DCA Makes Sense
DCA is better when:
- • Markets are highly volatile
- • You are investing from regular income
- • You are worried about a market crash
- • You need psychological comfort
- • You are investing a large windfall
Lump sum is better when:
- • Markets are trending upward
- • You have a long time horizon (10+ years)
- • You want maximum expected returns
- • You can handle short-term volatility
- • Historical averages favour investing immediately
The Best Strategy
The best investment strategy is the one you will actually stick with. Lump sum investing has a statistical edge, but DCA helps many investors avoid the common mistake of waiting for the perfect moment to invest — which often means never investing at all.