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Lump Sum vs DCA Calculator

Compare investing your capital immediately with gradually investing it over time. This first version uses a constant-return projection model, not historical market data.

Lump sum final value
DCA final value
Difference
Projected outcome

Portfolio value 20-year projection
Lump sum DCA
Start 10 years 20 years
Monthly DCA amount
Net assumed annual return
Time fully invested
How this projection works

Both strategies use the same starting capital, horizon and assumed market return. Lump sum invests everything immediately. DCA moves an equal share of the original capital into the investment at the start of each month; undeployed cash earns the cash return entered above. On the final DCA month, all remaining cash is invested. The annual fund fee is applied to both strategies.

Constant-return projections are simplified examples, not forecasts. Historical mode will be added separately using documented market data and clearly stated methodology.

Calculation method

How the projection is calculated

The expected annual return is treated as a gross total-return assumption. The annual fund fee reduces that annual growth factor, and the resulting net annual factor is converted to an equivalent monthly rate for the simulation.

Net annual growth factor (1 + expected return) × (1 − annual fee)
Monthly investment rate net annual factor^(1/12) − 1
Lump sum Full capital invested at the start
DCA Equal monthly transfers; final scheduled month invests remaining cash

Lump sum investing

What does lump sum investing mean?

Lump sum investing means putting the full amount of available capital into the investment at the start. In this calculator, the entire starting balance begins compounding immediately using the return and fee assumptions you enter.

Dollar-cost averaging

What does DCA mean?

Dollar-cost averaging, or DCA, spreads the same starting capital across a chosen number of monthly investments. Until each scheduled investment is made, the undeployed balance remains in cash and earns the cash return entered in the calculator.

How to read the result

The comparison isolates timing, not different portfolios.

Both strategies use the same starting capital, investment horizon, assumed market return and annual fund fee. The main difference is when the money enters the investment.

Same capital The comparison starts with the same total amount of money.
Same return assumption Both invested balances use the same net monthly growth rate.
Different time in the market Lump sum is invested immediately, while DCA enters gradually.
Cash is explicit You can set the return earned by capital that has not yet been invested.
Currency is a display setting Changing EUR, USD, GBP or another supported currency changes formatting only; it does not perform foreign-exchange conversion.

Projection mode

This is not historical market data.

The current calculator uses a constant annual-return assumption converted into monthly compounding. It is useful for understanding the mechanics of investment timing, but real markets do not produce a constant return every month.

A separate historical mode will compare the two strategies against documented market-price data so the distinction between hypothetical projections and actual past market paths remains clear.

Frequently asked questions

Lump sum vs DCA: common questions

Does this calculator assume the same investment for both strategies?

Yes. The projection uses the same return and fee assumptions for the invested portion of both strategies so the timing difference is easier to isolate.

What happens to money that has not yet been invested with DCA?

It remains in the calculator's cash balance and compounds at the cash-return assumption you choose until it is transferred into the investment.

Are dividends included?

In projection mode there is no separate dividend stream. The expected annual return is treated as a total-return assumption before the fund-fee adjustment.

Why can the result change when I change the DCA period?

A longer DCA period changes how long part of the capital remains outside the investment, which changes both market exposure and the amount of time the waiting cash can earn its cash return.

Can I share a specific scenario?

Yes. The calculator stores the current inputs in the URL. The Copy share link button creates a link that reopens the same scenario while the canonical SEO URL remains the clean calculator page.

Related guide

What return assumption should you use?

Learn how to treat expected return as a scenario input, distinguish gross from net and nominal from real returns, and test more than one assumption before interpreting a projection.

Read the expected return guide

Finance Charts

One tool first. A connected library next.

This calculator is the first part of a broader set of investment calculators, historical simulations and visual comparisons. New tools will reuse the same methodology and design system rather than becoming isolated one-off pages.

Explore the tool roadmap