Dollar Cost Averaging (DCA) Calculator
Calculate your average cost basis when investing the same amount regularly.
See how dollar cost averaging builds wealth over time with total invested vs portfolio value.
Portfolio Value
Dollar Cost Averaging Formula
Future Value = P(1+r)^n + PMT × [(1+r)^n − 1] / r
Where:
- P = initial lump sum investment
- PMT = monthly investment amount
- r = monthly return rate (annual rate ÷ 12)
- n = number of months (years × 12)
DCA reduces the impact of market volatility by spreading purchases over time. You buy more shares when prices are low and fewer when prices are high — automatically lowering your average cost basis.