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Dollar-Cost Averaging Calculator

How much a small amount invested regularly adds up to, and how much of the result comes from the market versus from your own pocket.

Result

Currency

The regular amount you invest.

Assumption for the market, before inflation.

How long you keep going.

Portfolio value

63.392 €

What you contributed
36.000 €
Investment gainAssumption
27.392 €
Value in today's moneyAssumption
47.102 €
Real annual return on contributionsAssumption
+3,84 %
Show all years
YearContributionsValueGain
12.400 €2.479 €79 €
24.800 €5.136 €336 €
37.200 €7.986 €786 €
49.600 €11.042 €1.442 €
512.000 €14.319 €2.319 €
614.400 €17.832 €3.432 €
716.800 €21.600 €4.800 €
819.200 €25.640 €6.440 €
921.600 €29.972 €8.372 €
1024.000 €34.617 €10.617 €
1126.400 €39.598 €13.198 €
1228.800 €44.939 €16.139 €
1331.200 €50.666 €19.466 €
1433.600 €56.807 €23.207 €
1536.000 €63.392 €27.392 €

How it's calculated

Dollar-cost averaging spreads your buying out over time. When prices are low, the same amount buys more shares; when prices are high, it buys fewer — so the average purchase price ends up steadier than a single large buy.

The figure most often misread here is the return. A plan that assumes 7% per year doesn't earn 7% on the money you've contributed, because most of it has been in the market for only part of the term. The return on contributions calculated here is always lower than the assumed rate — and it's the one that shows what you've actually made.

The more often you invest the same money over the year, the sooner it enters the market and the longer it has to grow. That's why twelve monthly payments produce slightly more than four quarterly ones with the same total.

Example

€200 every month for fifteen years at a 7% return is €36,000 of contributions that grows to about €63,000. But the return on the money you've put in works out to about 3.8% per year — not 7% — because half of it was invested only during the second half of the term.

Frequently asked questions

Why is the return on contributions lower than the rate I set?
Because the euro you contributed in the final month has been invested for one month, not fifteen years. The assumed rate describes the market; the return on contributions describes your plan.
Is it better to invest everything at once?
Historically a single lump-sum investment has done slightly better on average, because the money enters the market sooner. But dollar-cost averaging reduces the risk of getting in at the wrong moment, and for most people it's the only practical option.
Are fund fees included?
No. If your fund charges 0.3% per year, lower the return rate by that amount. Over fifteen years the difference is bigger than it looks.