What is dollar-cost averaging?
Dollar-cost averaging, or DCA, means investing the same amount on a regular schedule instead of trying to choose one perfect entry date. The calculator uses an initial investment, equal monthly contributions, and one fixed effective annual return.
Monthly return = (1 + annual return)^(1/12) − 1
Future value = initial investment growth + future value of monthly contributions
Future value = initial investment growth + future value of monthly contributions
What the result means
Real investment returns change from month to month. This calculation is a comparison scenario, not a guaranteed path or a forecast. It excludes taxes, fees, and inflation.
Frequently asked questions
Does DCA guarantee a profit?
No. Regular investing changes purchase timing but does not remove market risk.
Why choose beginning or end of month?
A beginning-of-month contribution participates in one additional month of return.
Can I enter a negative return?
Yes, above −100%. It models a declining fixed-return scenario.