Dollar-Cost Averaging Calculator
Enter a fixed amount, how often you invest it, an expected annual return, and a time horizon to see where steady investing could land.
Model a plan
Amount invested each period, from $1 through $10 million.
How often you invest the fixed amount.
Constant hypothetical annual return, from -40% through 40%.
Use a whole number from 1 through 100.
Investing steadily at a constant expected return. Real markets vary, so treat this as one illustrative path.
- Total invested
- $120,000.00
- Total return
- $174,510.21
- Total return %
- 145.4252%
How dollar-cost averaging is calculated
A fixed amount is invested every period and each contribution grows at a constant expected return until the end of the horizon. The ending value is the future value of that stream of equal, end-of-period contributions — a standard future-value-of-an-annuity calculation. This models a constant expected return; real markets vary from period to period.
FV = PMT × (((1 + i)N − 1) / i)- FV
- Ending value
- PMT
- Investment per period
- i
- Return per period (annual ÷ periods per year)
- N
- Total number of periods
$500 a month at 8% for 20 years
Suppose you invest $500 monthly for 20 years at a hypothetical 8% expected annual return. You invest $120,000 in total across 240 contributions. The projected ending value is $294,510.21, a total return of $174,510.21, or 145.4252%.
This is a hypothetical, educational calculation. It models a constant expected return; real markets vary, so actual results will differ and can be negative.
What this calculator assumes
- The same fixed amount is invested every period without a miss.
- The expected annual return is constant for the full horizon.
- Contributions are made at the end of each period and stay invested.
- Taxes, fees, and inflation are not modeled.
- Money values are rounded to the nearest cent for display.
Dollar-cost averaging FAQ
Does dollar-cost averaging guarantee a gain?
No. This tool applies a single constant expected return to illustrate one path. Real market returns vary every period and can be negative, so actual outcomes will differ.
Why is the total return so much larger than the return rate?
Total return here is the ending value versus everything you put in, compounded over many periods. Because early contributions grow for the full horizon, the cumulative percentage can far exceed the annual rate.
Sources and review notes
- U.S. Securities and Exchange Commission, Investor.gov — Dollar-Cost Averaging glossary
- Financial Consumer Agency of Canada — Savings and investments
Methodology last checked Jul 14, 2026. Formula implementation is covered by deterministic unit tests. No financial professional review is claimed yet.