Long-Term Planning Tool
DCA & Compound Calculator
Model dollar-cost averaging with monthly contributions and a chosen annual return rate. See how compound growth builds over time under your assumptions.
Disclaimer: Informational and educational only. Not financial advice. The rate of return you enter is an assumption — not a prediction or guarantee. Actual investment returns vary and are not guaranteed. Past performance does not guarantee future results. Consult a licensed financial advisor.
$
Initial lump-sum (can be 0)
$
Fixed amount added each month
%
Your assumption — not guaranteed
yrs
Years to project
Assumptions this calculator makes: Constant annual return rate, monthly compounding, contributions made at end of each month, no taxes or inflation adjustment. Real-world results will differ.
Projection (Assumed — annual return)
Projected Future Value
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Total Contributed (principal + deposits)
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Growth from Compounding
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Compounding Multiple
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How DCA & Compound Growth Works
What is dollar-cost averaging?
Dollar-cost averaging (DCA) is investing a fixed amount at regular intervals regardless of price. When prices are low you buy more units; when prices are high you buy fewer. This calculator models that pattern as steady monthly contributions with a constant assumed return rate.
What formula is used?
FV of lump sum: P × (1 + r/12)^(n×12). FV of monthly contributions: C × [((1 + r/12)^(n×12) − 1) ÷ (r/12)]. Total = both summed. Standard compound interest math applied monthly.
Are projected returns guaranteed?
No — the rate you enter is a mathematical assumption applied mechanically to illustrate compounding. Actual investment returns are unknown in advance and vary considerably. This calculator makes no prediction and is educational only.
What rate should I use?
We make no recommendation on rate. Try multiple scenarios to see how sensitive the outcome is. Common scenarios people explore in educational contexts include 3%, 5%, 7%, and 10% — but there is no guarantee any investment achieves any specific rate.
Does this account for inflation?
No. This calculator shows nominal future value without inflation adjustment. To model real (inflation-adjusted) purchasing power, subtract an assumed inflation rate from your return rate before entering it (e.g., if you assume 7% gross return and 3% inflation, enter 4%).