Lump Sum vs DCA Calculator
Compare investing all at once against dollar-cost averaging across a chosen price path.
Lump Sum Ending Value
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DCA Ending Value
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Difference
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Result
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Guide
How it works
Use this calculator to compare investing a lump sum against dollar-cost averaging.
What this calculator does
The lump sum vs DCA calculator compares ending value when the same total amount is invested all at once or spread across monthly purchases.
Lump Sum vs DCA Formula
Lump Sum Value = (Amount / Starting Price) x Ending Price
DCA Value = Total Shares Bought Over Time x Ending Price
Example calculation
If you invest 12,000 at once or spread it over 12 months, this calculator compares the ending values using the price path you enter.
When to use this calculator
- deciding how to deploy cash
- comparing entry strategies
- testing rising or falling market assumptions
- explaining the tradeoff between timing risk and time in market
FAQs
Which strategy is better?
It depends on the price path. Lump sum often benefits from rising markets, while DCA can help when prices fall during the buying period.
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