Dollar-Cost Averaging Calculator

Dollar-Cost Averaging is evaluated from Amount Invested Per Period, Periods Per Year and Investment Period. The calculation reports Total Amount Invested, Total Portfolio Value and Total Investment Gains.

Results

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About the Dollar-Cost Averaging Calculator

Dollar-Cost Averaging is treated here as a quantitative relation between Amount Invested Per Period, Periods Per Year, Investment Period and Expected Annual Return and Total Amount Invested, Total Portfolio Value, Total Investment Gains and Return Multiplier.

The calculator uses a multi formula configuration. Each reported value is read as a direct evaluation of the stored rules with the declared field formats and units.

Formula basis:
Periodic payments grow by compound interest each period. Future value formula accounts for each installment earning returns for its remaining time. Add lump sum grown separately. Total gains = future value minus total invested.

Interpret the outputs in the order shown by the result fields. Optional inputs affect only the outputs that depend on those variables.

Formula & How It Works

The calculation applies the following relations exactly as recorded in the metadata:

Periodic payments grow by compound interest each period. Future value formula accounts for each installment earning returns for its remaining time. Add lump sum grown separately. Total gains = future value minus total invested.

Each output field is produced by substituting the supplied inputs into the relevant relation and then applying the declared rounding or text format.

Worked Examples

Example 1: $500/month into S&P 500 index fund for 30 years at 10%

Inputs

periodic_investment: 500 periods_per_year: 12 years: 30 annual_return: 10 initial_lump_sum: 0
Total Amount Invested: $180,000. Total Portfolio Value: $1,139,662.66. Total Investment Gains: $959,662.66. Return Multiplier: 6.33 x. Annual Investment Amount: $6,000. Lump Sum Equivalent FV: $3,140,892.41

With Amount Invested Per Period = 500, Periods Per Year = 12, Investment Period = 30 and Expected Annual Return = 10 as the stated inputs, the result is Total Amount Invested = $180,000, Total Portfolio Value = $1,139,662.66 and Total Investment Gains = $959,662.66. Each value corresponds to the declared output fields.

Example 2: $250/month for 40 years starting at age 25 at 8%

Inputs

periodic_investment: 250 periods_per_year: 12 years: 40 annual_return: 8 initial_lump_sum: 0
Total Amount Invested: $120,000. Total Portfolio Value: $878,570.3. Total Investment Gains: $758,570.3. Return Multiplier: 7.32 x. Annual Investment Amount: $3,000. Lump Sum Equivalent FV: $2,606,942.58

With Amount Invested Per Period = 250, Periods Per Year = 12, Investment Period = 40 and Expected Annual Return = 8 as the stated inputs, the result is Total Amount Invested = $120,000, Total Portfolio Value = $878,570.3 and Total Investment Gains = $758,570.3. Each value corresponds to the declared output fields.

Example 3: Bi-weekly investment ($200) — paycheck-aligned, 20 years at 9%

Inputs

periodic_investment: 200 periods_per_year: 26 years: 20 annual_return: 9 initial_lump_sum: 5000
Total Amount Invested: $109,000. Total Portfolio Value: $319,700.89. Total Investment Gains: $210,700.89. Return Multiplier: 2.93 x. Annual Investment Amount: $5,200. Lump Sum Equivalent FV: $610,880.77

With Amount Invested Per Period = 200, Periods Per Year = 26, Investment Period = 20 and Expected Annual Return = 9 as the stated inputs, the result is Total Amount Invested = $109,000, Total Portfolio Value = $319,700.89 and Total Investment Gains = $210,700.89. Each value corresponds to the declared output fields.

Example 4: Aggressive investor: $1,000/week, 15 years, 12% return (growth stocks)

Inputs

periodic_investment: 1000 periods_per_year: 52 years: 15 annual_return: 12 initial_lump_sum: 50000
Total Amount Invested: $830,000. Total Portfolio Value: $2,461,465.28. Total Investment Gains: $1,631,465.28. Return Multiplier: 2.97 x. Annual Investment Amount: $52,000. Lump Sum Equivalent FV: $4,543,059.58

With Amount Invested Per Period = 1,000, Periods Per Year = 52, Investment Period = 15 and Expected Annual Return = 12 as the stated inputs, the result is Total Amount Invested = $830,000, Total Portfolio Value = $2,461,465.28 and Total Investment Gains = $1,631,465.28. Each value corresponds to the declared output fields.

Common Use Cases

  • Calculate total returns from regular investments
  • Compare DCA to lump sum investing
  • Plan a monthly or weekly investment strategy