Transparent method
The formula
Worked example
Example inputs
How to interpret the result
A projected balance from equal monthly investments comes from two genuinely separate sources, the contributions themselves and the growth on top of them, and separating the two is what actually shows how much of the eventual balance came from consistent saving versus market performance doing the work.
Before you rely on it
What to check
Break the projected total into its contribution and growth components separately, rather than reading the single combined ending balance as one undifferentiated figure.
The common error
Where people go wrong with dollar-cost averaging calculator
Treating the entire projected ending balance as a reflection of investment performance. A meaningful share of it, especially early in the projection, comes directly from the contributions themselves rather than from any market growth at all.
Sensitivity evidence
How expected annual return changes the projected value
| Expected annual return | Projected value | Projected growth |
|---|---|---|
| 5.0% | $106,916 | $34,916 |
| 6.0% | $116,327 | $44,327 |
| 7.0%worked example | $126,785 | $54,785 |
| 8.0% | $138,415 | $66,415 |
| 9.0% | $151,362 | $79,362 |
Every input, tested
Which input moves the projected value most
| Input | Tested from | To | Projected value at each end | Swing |
|---|---|---|---|---|
| Investment period | 11.0 years | 19.0 years | $79,196 to $189,700 | $110,504 (87%) |
| Monthly investment | $360 | $440 | $114,106 to $139,463 | $25,357 (20%) |
| Expected annual return | 6.0% | 8.0% | $116,327 to $138,415 | $22,088 (17%) |
Two variables at once
Projected value by expected annual return and monthly investment
| Expected annual return \ Monthly investment | $320 | $400 | $480 |
|---|---|---|---|
| 5.0% | $85,532 | $106,916 | $128,299 |
| 6.0% | $93,062 | $116,327 | $139,593 |
| 7.0% | $101,428 | $126,785 | $152,142 |
| 8.0% | $110,732 | $138,415 | $166,098 |
| 9.0% | $121,090 | $151,362 | $181,635 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Monthly investment | $400 |
| Expected annual return | 7.0% |
| Investment period | 15.0 years |
| Projected value | $126,785 |
| Projected growth | $54,785 |
Complete evidence
Full projection schedule
Show all 15 rows
| Period | Opening balance | Contribution | Growth | Ending balance |
|---|---|---|---|---|
| Year 1 | $0.00 | $4,800 | $0.00 | $4,800 |
| Year 2 | $4,800 | $4,800 | $336 | $9,936 |
| Year 3 | $9,936 | $4,800 | $696 | $15,432 |
| Year 4 | $15,432 | $4,800 | $1,080 | $21,312 |
| Year 5 | $21,312 | $4,800 | $1,492 | $27,604 |
| Year 6 | $27,604 | $4,800 | $1,932 | $34,336 |
| Year 7 | $34,336 | $4,800 | $2,404 | $41,539 |
| Year 8 | $41,539 | $4,800 | $2,908 | $49,247 |
| Year 9 | $49,247 | $4,800 | $3,447 | $57,494 |
| Year 10 | $57,494 | $4,800 | $4,025 | $66,319 |
| Year 11 | $66,319 | $4,800 | $4,642 | $75,761 |
| Year 12 | $75,761 | $4,800 | $5,303 | $85,865 |
| Year 13 | $85,865 | $4,800 | $6,011 | $96,675 |
| Year 14 | $96,675 | $4,800 | $6,767 | $108,242 |
| Year 15 | $108,242 | $4,800 | $7,577 | $120,619 |
Where the inputs come from
Monthly investment is the fixed amount you invest on a schedule, such as through a payroll deduction. Expected annual return is an assumption for the fund you use, and the investment period is how many years you will keep going. The tool assumes each deposit lands at the end of the month with the same return, so it shows the smooth case. Use a modest return to be conservative.
When the result stops applying
The projection uses a constant return, which real markets never deliver. Actual dollar-cost averaging results depend on the path of prices, and in a market that rises steadily, investing a lump sum earlier usually wins. The calculator does not include fees, taxes or changes in your contributions over time.
What to compare it with
Compare the plan with investing the same cash all at once using the DCA versus lump sum calculator. If you are saving for retirement, the retirement savings calculator adds an employer match and inflation. Raising your contribution each year with pay increases is one of the most effective changes, so try a higher monthly amount here.
People also ask
Frequently asked questions
Does dollar-cost averaging beat lump-sum investing?
Historically, lump sums have come out ahead roughly two-thirds of the time in US markets because prices tend to rise. Dollar-cost averaging trades a lower expected return for less regret if prices fall right after investing.
How much should I invest each month?
Start with what fits your budget after an emergency fund, and raise it when income grows. A common target is 15% of gross income across all retirement accounts, but any consistent amount beats waiting.
Does it work for a single stock?
The method is the same, but a single stock can fall and never recover, so averaging down does not protect you the way it does with a diversified fund.