Lump sum wins by
$0
Projected value difference at the end of the horizon.
Investing decision
Lump Sum vs. DCA Calculator
Compare investing cash all at once with dollar-cost averaging over time using expected return, DCA period, and investment horizon.
Lump sum vs. DCA guide
What this lump sum vs. DCA calculator does
This calculator compares investing a cash amount immediately with spreading the same amount across a dollar-cost averaging schedule.
Updated May 13, 2026. Educational estimate only.
How to use it
- Enter the cash amount.
- Choose how many months you would average into the market.
- Set an expected annual return.
- Choose the full investment horizon.
- Compare projected ending values.
Example
With positive average returns, lump sum often projects higher because more cash is invested sooner. DCA may still help if it keeps you from freezing or abandoning the plan.
Common assumptions
The model assumes smooth returns and does not model volatility, taxes, fees, cash yield, or the emotional benefit of reducing timing regret.
Related calculators
Is lump sum always better?
No. It often has a higher expected value, but actual short-term market returns can make DCA look better in some periods.
Why use DCA?
DCA can reduce timing regret and make execution easier.
Does this include cash interest?
No. Cash yield during the DCA period is not modeled.
Related guide: Dollar-cost averaging explained.