Dollar Cost Averaging Calculator

Model recurring investment purchases, average cost basis, and ending value, then compare the result with investing the same planned capital upfront.

Compare recurring purchases with investing the same planned capital upfront Dollar-cost averaging spreads the planned capital across regular purchases. This model shows average cost basis, ending value, and how the path compares with a same-capital lump-sum entry under the selected market pattern.

Recurring investment ($ per month)

Years to invest Initial share price ($)

Annual price return assumption (%)

Market path

Front-loads a drawdown before a recovery to show when spreading purchases can help.

Display currency

Switch the display currency for the investment path without changing the share-count math.

Currency

Comparison rule

The lump-sum comparison assumes the same planned capital was available on day one. That makes the comparison useful for deployment timing, but it is not a claim that every investor actually has the full amount upfront.

Result

$104,467.92

Ending value of the dollar-cost-averaging plan after investing $500.00 per month for 10 years.

Lump sum finishes ahead in this path Under the selected price path, investing the same planned capital upfront finishes $25,066.08 ahead of the recurring-purchase plan.

Total invested: $60,000.00
Average cost basis: $123.99
Shares accumulated: 483.89
Ending share price: $215.89

Dollar-cost averaging

$104,467.92

Gain or loss: $44,467.92 (74.11%)

Same-capital lump sum

$129,534.00

Gain or loss: $69,534.00 (115.89%)

Share accumulation edge

-116.11

Positive values mean the recurring plan accumulated more shares than buying the same capital upfront.

Cost-basis read

A lower average cost basis means the recurring purchases captured more shares per unit of capital. That helps most when prices dip or oscillate during the buying window.

Year-by-year path

Year	Share price	Total invested	Shares owned	Portfolio value	Average cost basis
1	$84.29	$6,000.00	70.48	$5,940.92	$85.13
2	$93.58	$12,000.00	137.78	$12,893.24	$87.10
3	$103.88	$18,000.00	198.4	$20,609.35	$90.73
4	$115.33	$24,000.00	253	$29,178.31	$94.86
5	$128.03	$30,000.00	302.18	$38,688.52	$99.28
6	$142.14	$36,000.00	346.49	$49,249.75	$103.90
7	$157.79	$42,000.00	386.4	$60,969.43	$108.70
8	$175.17	$48,000.00	422.34	$73,982.05	$113.65
9	$194.47	$54,000.00	454.73	$88,430.53	$118.75
10	$215.89	$60,000.00	483.89	$104,467.92	$123.99

Investment Timing

Dollar-cost averaging calculator guide: recurring purchases, average cost basis, and lump-sum comparison

A dollar-cost averaging calculator models what happens when the same amount is invested at regular intervals instead of all at once. The key outputs are average cost basis, ending value, and the difference versus a same-capital lump-sum entry under the selected market path. That makes it useful for deployment-timing questions, not just for generic growth projection.

About this calculator

Reviewed 2026-03-21

Methodology

Simulates equal recurring monthly purchases across the selected horizon, calculates shares accumulated and average cost basis from the modeled share-price path, and compares the ending value with a same-capital lump-sum purchase made at the initial share price.

Limitations

Uses a simplified deterministic share-price path rather than real market data or stochastic market simulation.
Assumes no taxes, commissions, bid-ask spreads, fund fees, dividends, or contribution gaps.
The lump-sum comparison assumes the full planned capital was available on day one, which may not match every investor’s real cash flow.
This is a planning and education tool only and not investment advice or a forecast of actual returns.

Disclaimer

Use this comparison to understand timing trade-offs only. Before making investment decisions, consider your real cash flow, taxes, fees, risk tolerance, and asset allocation plan.

Sources

FINRA — The Pros and Cons of Dollar-Cost Averaging — High-trust investor guidance explaining the core trade-offs behind dollar-cost averaging.
FINRA — Investment returns — High-trust investor guidance supporting caution around return assumptions in any recurring-investment plan.
FINRA — Tips for new investors — High-trust investor guidance on discipline, diversification, and risk framing for long-term investing.

See our calculation methodology and editorial standards for how this estimate is produced.

What dollar-cost averaging is trying to do

Dollar-cost averaging spreads purchases over time so that more shares are bought when prices are lower and fewer shares are bought when prices are higher. The trade-off is straightforward: it can smooth the entry price, but it may also leave part of the capital uninvested for longer than an upfront lump-sum purchase would.

That trade-off is why a comparison view matters. In a smoothly rising market, lump sum often wins because more money is exposed to growth earlier. In a choppier or early-drawdown market, spreading the purchases can sometimes help the cost basis and narrow or reverse the performance gap.

How this calculator frames the comparison

The recurring-purchase side assumes the same cash amount is invested every month for the chosen time period. The lump-sum side assumes that the entire planned capital for that period was available and invested on day one. That assumption is important: it makes the timing comparison meaningful, but it does not describe every real investor’s cash-flow situation.

The market path setting changes how prices move between the start and end points. A steady path concentrates on the classic rising-market trade-off, while the early-dip and volatile paths illustrate how cost-basis averaging can matter when prices do not move in a straight line.

Core maths behind average cost basis and final value

Each recurring purchase buys a number of shares equal to that month’s investment amount divided by that month’s share price. Total shares accumulated then determine the final portfolio value once the ending share price is applied. Average cost basis is the total cash invested divided by the total shares accumulated.

The same-capital lump-sum comparison buys all shares at the initial share price. That means the difference between the two paths comes from timing, not from total planned capital or the final share price.

Shares bought each period = Periodic investment / Share price

Calculates how many shares each recurring contribution purchases at the prevailing price.

Average cost basis = Total invested / Total shares accumulated

Shows the weighted average price paid per share across the recurring purchases.

How to read the result carefully

A lower average cost basis is not the same thing as a higher ending value. If the market rises steadily, a lump-sum investor can still finish ahead because more capital was invested earlier even if the recurring plan feels behaviorally easier.

That is why dollar-cost averaging is often as much about risk management and behavior as about raw performance. Some investors prefer the discipline of recurring purchases because it reduces regret risk and makes it easier to keep investing through volatility, even if the expected return from lump sum is sometimes higher.

Dollar Cost Averaging Calculator

$104,467.92

Dollar-cost averaging calculator guide: recurring purchases, average cost basis, and lump-sum comparison

What dollar-cost averaging is trying to do

How this calculator frames the comparison

Core maths behind average cost basis and final value

How to read the result carefully

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