Dollar Cost Averaging vs Lump Sum Calculator
Should you invest all your money at once, or spread it out over time? Compare both strategies to understand the trade-offs.
DCA invests $4,167 /month over 12 months
Lump Sum Leads By
$921
1.61% difference
Lump Sum Final
$58,320
+16.6% total
DCA Final
$57,399
+14.8% total
Historical analyses suggest lump sum investing has outperformed DCA in roughly two-thirds of rolling periods, as markets have trended upward over time.
Portfolio Value Over Time
Investment Parameters
12 investments of $8,333 each
Return Assumptions
Interest earned on uninvested cash (e.g., money market)
With Fixed Returns
Lump Sum Leads
By $3,160 (1.5% difference)
Lump Sum Final
DCA Final
Cash Interest Earned
$3,228
Portfolio Growth Over Time
Compares the total portfolio value of lump sum vs. dollar-cost averaging over the projection period.
DCA Deployment: Invested vs Cash
During the 12-month DCA period, showing how funds transition from cash to investments.
Lump Sum Advantage Over Time
Positive values indicate Lump Sum is ahead; negative values indicate DCA is ahead.
Detailed Breakdown
| Month | Lump Sum | DCA Total | DCA Invested | DCA Cash | Return | LS Advantage |
|---|---|---|---|---|---|---|
| 1 | $100,565 | $100,384 | $8,380 | $92,004 | +0.57% | +$181 |
| 2 | $101,134 | $100,786 | $16,808 | $83,978 | +0.57% | +$348 |
| 3 | $101,706 | $101,206 | $25,284 | $75,922 | +0.57% | +$500 |
| 4 | $102,281 | $101,645 | $33,807 | $67,837 | +0.57% | +$636 |
| 5 | $102,859 | $102,101 | $42,379 | $59,723 | +0.57% | +$758 |
| 6 | $103,441 | $102,577 | $50,999 | $51,578 | +0.57% | +$864 |
| 7 | $104,026 | $103,071 | $59,668 | $43,404 | +0.57% | +$954 |
| 8 | $104,614 | $103,585 | $68,385 | $35,199 | +0.57% | +$1,029 |
| 9 | $105,205 | $104,117 | $77,153 | $26,965 | +0.57% | +$1,088 |
| 10 | $105,800 | $104,669 | $85,969 | $18,700 | +0.57% | +$1,131 |
| 11 | $106,398 | $105,240 | $94,836 | $10,405 | +0.57% | +$1,158 |
| 12● | $107,000 | $105,831 | $103,752 | $2,079 | +0.57% | +$1,169 |
| 13 | $107,605 | $106,426 | $104,339 | $2,087 | +0.57% | +$1,179 |
| 14 | $108,213 | $107,023 | $104,929 | $2,094 | +0.57% | +$1,190 |
| 15 | $108,825 | $107,624 | $105,522 | $2,102 | +0.57% | +$1,201 |
| 16 | $109,441 | $108,229 | $106,119 | $2,110 | +0.57% | +$1,212 |
| 17 | $110,059 | $108,836 | $106,719 | $2,117 | +0.57% | +$1,223 |
| 18 | $110,682 | $109,448 | $107,322 | $2,125 | +0.57% | +$1,234 |
| 19 | $111,307 | $110,062 | $107,929 | $2,133 | +0.57% | +$1,245 |
| 20 | $111,937 | $110,680 | $108,539 | $2,141 | +0.57% | +$1,257 |
| 21 | $112,570 | $111,302 | $109,153 | $2,149 | +0.57% | +$1,268 |
| 22 | $113,206 | $111,927 | $109,770 | $2,157 | +0.57% | +$1,279 |
| 23 | $113,846 | $112,555 | $110,391 | $2,164 | +0.57% | +$1,291 |
| 24 | $114,490 | $113,188 | $111,015 | $2,172 | +0.57% | +$1,302 |
| 36 | $122,504 | $121,056 | $118,786 | $2,270 | +0.57% | +$1,448 |
| 48 | $131,080 | $129,474 | $127,101 | $2,372 | +0.57% | +$1,606 |
| 60 | $140,255 | $138,477 | $135,998 | $2,479 | +0.57% | +$1,778 |
| 72 | $150,073 | $148,109 | $145,518 | $2,591 | +0.57% | +$1,964 |
| 84 | $160,578 | $158,412 | $155,704 | $2,707 | +0.57% | +$2,166 |
| 96 | $171,819 | $169,433 | $166,604 | $2,829 | +0.57% | +$2,386 |
| 108 | $183,846 | $181,222 | $178,266 | $2,956 | +0.57% | +$2,623 |
| 120 | $196,715 | $193,834 | $190,745 | $3,089 | +0.57% | +$2,881 |
| 132 | $210,485 | $207,325 | $204,097 | $3,228 | +0.57% | +$3,160 |
Shaded rows indicate DCA deployment period
About This Analysis
This calculator provides estimates based on the inputs you supply. It assumes standard amortization and does not account for taxes, insurance, PMI, prepayment penalties, or the opportunity cost of funds. Results are for informational and educational purposes only and should not be considered financial advice. Consult a qualified professional before making financial decisions.
- ·Assumes a fixed annual return compounded monthly. Actual market returns vary.
- ·Cash interest rate applies to uninvested DCA funds during the deployment period.
- ·Scenario projections use simplified market models and do not represent actual historical periods.
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Quick Reference
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Insights
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