DCA vs Lump Sum Calculator
Compare dollar-cost averaging vs investing all at once. See which strategy performs better.
How many months to spread out investments
DCA vs Lump Sum: The Trade-offs
Lump Sum Advantage: Statistically better returns. Your money is in the market longer, capturing more growth in rising markets.
DCA Advantage: Reduces timing risk. If markets drop, you buy at lower prices. Emotionally easier for large sums.
When to DCA: If you'd feel terrible investing everything right before a crash, DCA may help you actually invest rather than sitting in cash paralyzed by fear.
Important: This comparison assumes you have a lump sum ready to invest. Regular contributions from your paycheck are already DCA by default.
This calculator provides estimates for educational purposes only.