Dollar-Cost Averaging Calculator
Calculate the power of dollar-cost averaging (DCA) for your investments. Compare regular investing strategies and see how consistent contributions can grow your portfolio over time.
Step 1: Investment Details
Understanding Dollar-Cost Averaging
Dollar-cost averaging involves investing a fixed amount regularly regardless of market conditions. This strategy reduces the impact of volatility and lowers the average cost per share over time.
Step 2: Market Details
About Expected Returns
Historical average annual returns: S&P 500: ~7% after inflation, Bonds: ~3-5%, High-risk investments: 10%+. Past performance doesn’t guarantee future results.
DCA Investment Results
Projected Portfolio Value After DCA
Investment Strategy Comparison
| Strategy | Total Invested | Final Value | Total Gain | Annual Return |
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Investment Growth Breakdown
DCA Calculation Formula
Future Value of Regular Investments: FV = P × [((1 + r)^nt – 1) / r]
Where P = periodic investment, r = periodic interest rate, n = number of compounds per year, t = time in years. This formula calculates the future value of regular investments with compound interest.
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