Dollar Cost Averaging Calculator – Investment Strategy | SoCalSolver

Calculate DCA returns, average cost per share, and portfolio value. Compare lump sum vs. dollar-cost averaging investing strategy with transaction fees.

Dollar-cost averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of the asset's price. Instead of trying to time the market by investing a lump sum at the 'perfect' moment, DCA spreads your investment risk over time by buying more shares when prices are low and fewer shares when prices are high. This calculator quantifies expected outcomes for DCA vs. lump sum, including the effects of transaction fees and dividend yields.

Use this tool for realistic scenarios—401(k) contributions, automated ETF/stock purchases, or regular crypto buys. It provides concrete outputs: shares acquired, average cost per share (cost basis), unrealized gains/losses, dividend totals, and a side-by-side comparison with a lump-sum investment made on day one.

Monthly Investment Amount (USD)

Amount invested every month. Example: $500/month over 10 years = $60,000 invested. · Min 1 · Max 100000

Investment Period (Years)

Number of years for DCA strategy. Example: 10 years = 120 monthly contributions. · Min 0.25 · Max 50

Starting Price Per Share (USD)

Initial price of the asset when DCA investment begins. Example: Bitcoin at $40,000, stock at $150. · Min 0.01 · Max 50000

Current Price Per Share (USD)

Current or target price per share. Used to calculate portfolio value and gain/loss. · Min 0.01 · Max 50000

Price Movement Pattern

Select how the asset price changes over time. Linear assumes steady movement; Annualized assumes compound growth.

Annualized Return Rate (%)

Expected annual return (positive for gains, negative for losses). S&P 500 historical average: ~10%. · Min -50 · Max 100

Transaction Fee Type

Fee structure for each monthly investment. Modern brokers often have $0 commissions; crypto exchanges charge 0.1%-0.5%.

Transaction Fee (Flat: USD / Percentage: %)

Fee per transaction. Flat: dollars per purchase (e.g., $5). Percentage: % of investment amount (e.g., 0.25%). · Min 0 · Max 1000

Compare with Lump Sum Scenario?

If enabled, shows what would happen if you invested the entire amount at the start (lump sum) vs. monthly (DCA).

Annual Dividend Yield (%) - Optional

Annual dividend as % of share price. Example: S&P 500 ETF at 1.5%, high-yield stocks at 3-5%. · Min 0 · Max 30

Results

Total Investment Months

120

Monthly Transaction Fee

$0.00

Annual Transaction Fees

—

Total Amount Invested

—

DCA: Average Cost Per Share

$146.93

DCA: Total Shares Acquired

—

DCA: Portfolio Value (at Current Price)

—

DCA: Total Dividends Earned

—

DCA: Total Return (Gain/Loss)

—

DCA: Total Return %

—

DCA: Annualized Return %

—

Lump Sum: Total Shares (If Invested at Start)

Lump Sum: Portfolio Value

$0.00

Lump Sum: Total Dividends

$0.00

Lump Sum: Total Return (Gain/Loss)

$0.00

Lump Sum: Total Return %

0.00%

Strategy: DCA vs Lump Sum Advantage

—

Strategy: Return Difference

$0.00

DCA: Monthly Investment Required

$500.00

DCA: Average Share Price Paid

—

Asset Price at End of Period

$120.00

Total Price Change (Start to End)

$20.00

Total Price Change %

2000.00%

DCA: Cost Basis Per Share

—

DCA: Unrealized Gain/Loss Per Share

—

DCA: Break-Even Price Per Share

—

Final Portfolio Value (DCA + Dividends)

—

Total Shares Acquired (DCA Method)

—

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Methodology

Core DCA Calculation: The calculator assumes monthly investments. For each month, number of shares = (monthly investment − fees) / asset price that month. Total shares is the sum of monthly shares; average cost per share = total amount invested / total shares acquired.

Price Movement Modeling: Supports constant, linear, and annualized compound-return models. Annualized model uses Price(t) = StartingPrice × (1 + AnnualReturn%)^t (t in years). For linear models, prices move uniformly from starting to current price.

Transaction Fees: Flat fees reduce the investable amount directly. Percentage fees reduce monthly investment by Fee% before computing shares. Total fees = monthly fee × total months. The methodology section cites sources for typical broker/exchange fees and fee impacts.

Dividend Handling: The calculator estimates dividends conservatively as Total Dividends = Total Shares × Starting Price × DividendYield% × Years (assumes payouts, not reinvestment). This is a simplified cash-dividend model—reinvested dividends would compound and increase returns; users should treat dividend outputs as conservative estimates.

Lump Sum Comparison: Lump sum calculations assume all cash invested at starting price on month 0. Comparisons use identical price-end and dividend assumptions as DCA for parity.

Worked examples

Example 1: Moderate Stock Market Growth (10-Year S&P 500 DCA)

Scenario: You invest $500/month in an S&P 500 ETF (starting price $300, growing at 8% annually) over 10 years with no transaction fees.

Frequently asked questions

Why does lump sum win in rising markets but DCA win in falling markets?

In a rising market, having all your money invested from day one means your entire portfolio grows. With DCA, you're holding cash for months, which earns zero returns—an opportunity cost. In a falling market, DCA lets you buy more shares as prices decline, lowering your average cost basis.

Useful links

Related calculators

External resources

Quality & oversight

Last review: Dec 6, 2025
Model version: v1.0
Reviewed by: Ugo Candido; Reviewer

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