How to compare lump sum and DCA
Use the same amount and horizon for both routes.
1
Enter the amount
Use the full sum available to invest.
2
Set the horizon
Use the period over which the money will stay invested.
3
Choose the DCA window
Try several windows to see how the math changes.
What does this tool do?
A lump sum has more time in the market, while dollar-cost averaging reduces the risk of buying at a single high price. The result depends on the return path, which no calculator can know in advance.
The Formula
Lump value = Amount × (1 + r)^months; DCA value = sum of monthly amounts × (1 + r)^remaining monthsFrequently Asked Questions
Which approach usually wins?
Historically a lump sum wins more often because markets rise over time, but DCA lowers the risk of a bad entry point.
Does DCA guarantee a better price?
No. It averages the entry price and removes timing decisions, but a rising market can leave cash on the sidelines.