DCA Calculator
Dollar-cost averaging turns one scary decision into twelve boring ones, and its arithmetic deserves the same simplicity: contributions in, fees out, final value compared. This calculator totals the plan — what you actually put in, what the broker's per-contribution fee silently added, and the gain measured against out-of-pocket rather than against contributions alone. The annualized figure uses the common lump-sum approximation and is labeled as such: an exact money-weighted return needs XIRR, which arrives with the price-series backtest planned for the next version. The cumulative schedule table shows the mountain you have to climb early on — DCA feels slow because the early months are mostly contributions and barely any compounding.
The short answer
$500 a month for 24 months invests $12,000; with $10 fees per buy, out of pocket is $12,240. Ending at $14,000 is a $1,760 gain — 14.38% over two years, about 8% annualized. Fees matter: they quietly took 2% of contributions before any market move.
Gain
$1,760.00
14.38% on out-of-pocket over 2 years.
- Total invested
- $12,000.00
- Contribution fees
- $240.00
- Total out of pocket
- $12,240.00
- Annualized (approx.)
- 8.01%
CAGR treating the invested stream as one sum — exact money-weighted return needs XIRR.
| Month | Invested | Out of pocket |
|---|---|---|
| 1 | $500.00 | $510.00 |
| 2 | $1,000.00 | $1,020.00 |
| 3 | $1,500.00 | $1,530.00 |
| 4 | $2,000.00 | $2,040.00 |
| 5 | $2,500.00 | $2,550.00 |
| 6 | $3,000.00 | $3,060.00 |
| 7 | $3,500.00 | $3,570.00 |
| 8 | $4,000.00 | $4,080.00 |
| 9 | $4,500.00 | $4,590.00 |
| 10 | $5,000.00 | $5,100.00 |
| 11 | $5,500.00 | $5,610.00 |
| 12 | $6,000.00 | $6,120.00 |
| 13 | $6,500.00 | $6,630.00 |
| 14 | $7,000.00 | $7,140.00 |
| 15 | $7,500.00 | $7,650.00 |
| 16 | $8,000.00 | $8,160.00 |
| 17 | $8,500.00 | $8,670.00 |
| 18 | $9,000.00 | $9,180.00 |
| 19 | $9,500.00 | $9,690.00 |
| 20 | $10,000.00 | $10,200.00 |
| 21 | $10,500.00 | $10,710.00 |
| 22 | $11,000.00 | $11,220.00 |
| 23 | $11,500.00 | $11,730.00 |
| 24 | $12,000.00 | $12,240.00 |
How to use DCA Calculator
- 1
Enter the plan
Contribution per month, number of months, and any per-contribution fee — the line most DCA calculators omit.
- 2
Enter the ending value
What the portfolio is worth, or a scenario you want to test. The gain is measured against out-of-pocket, including fees.
- 3
Read the schedule
The table shows cumulative invested and out-of-pocket per period — the honest picture of how slow early progress feels.
Why use this tool
- Out-of-pocket truth: contributions plus per-buy fees, not just contributions
- Gain against real cash deployed, with ROI over the exact period
- Approximate CAGR labeled honestly as an approximation
- Cumulative schedule table — watch the contributions pile up month by month
- No data connection: the math runs on your inputs, in your browser
Frequently asked questions
- How do I calculate my DCA return?
- Gain = final value − (total contributions + total fees); ROI = gain ÷ out-of-pocket. The example: $12,000 contributed, $240 of fees, $14,000 final → $1,760 gain, 14.38% over two years.
- Why does the annualized rate say approximate?
- It applies a lump-sum CAGR formula to a stream of contributions, which overstates slightly when contributions land mid-period. The exact money-weighted figure requires XIRR on every cash-flow date — planned for a future version with real price series.
- How much do fees hurt a DCA plan?
- Per-buy fees hit every contribution: $10 a month on $500 is 2% gone before the market moves anything. Flat-fee brokers punish small recurring buys disproportionately — compare percentage-based fees for this pattern.
- Is this financial advice?
- No. This is arithmetic on scenario numbers you enter, for general information. Whether to invest, and in what, depends on circumstances this tool does not know.
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