Investment Strategy
Optional: One-time investment at the start
Final Portfolio Value
After 5 years of DCA investing
DCA vs Lump Sum Comparison
What if you invested the same total amount as a lump sum at the start?
Portfolio Growth
Create Your DCA Plan
Ready to start dollar-cost averaging? Plan your recurring investments and see your projected wealth.
What is Dollar-Cost Averaging (DCA)?
Dollar-cost averaging is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of the asset's price. This approach helps reduce the impact of volatility on your overall purchase.
Benefits of DCA
- Reduces timing risk - You don't need to worry about timing the market
- Automates investing - Set it and forget it with regular contributions
- Emotional discipline - Removes the temptation to time the market
- Lower average cost - You buy more shares when prices are low
DCA vs Lump Sum Investing
Studies show that lump sum investing often outperforms DCA because markets tend to rise over time. However, DCA is psychologically easier and reduces the regret of investing before a downturn. The best strategy depends on your risk tolerance and whether you have a lump sum to invest.