Dollar-cost averaging calculator
Dollar-cost averaging (DCA) means investing a fixed amount on a fixed schedule — say, $500 every month — regardless of price. This calculator replays that plan against real market history, dividends included, so you can see what a steady habit would have actually become.
A real example, computed from market history
This is $500 invested in the S&P 500 (SPY) at the start of every month since January 2010 — recalculated from real prices, not an illustration.
$379,779+282%
By Jul 17, 2026, that $99,500 would have become $379,779 — a +282% total return.
Along the way it paid $31,564 in dividends, reinvested automatically in this simulation.
Real market prices, as of Jul 17, 2026
What dollar-cost averaging actually does
When you invest the same amount every period, you automatically buy more shares when prices are low and fewer when prices are high. Over time your average cost per share smooths out, and — more importantly — you remove the hardest decision in investing: when to buy.
DCA's real advantage is behavioral. Most people can't reliably pick the right moment to invest a lump sum, but almost anyone can automate a monthly amount and leave it alone.
How this calculator handles the schedule
Each contribution is placed at the start of the month, using the closing price of the first trading day on or after that date — weekends and holidays roll forward, exactly as a real broker order would.
Dividends are included through adjusted closing prices, which account for both stock splits and dividend reinvestment. The methodology page documents every rule.
The honest caveat: DCA doesn't always win
In markets that mostly rise, investing a lump sum on day one usually beats spreading it out — the money is simply in the market longer. DCA shines when the alternative is waiting for a perfect moment that never comes, or when you're investing income as you earn it, which is how most people actually invest.
Try the same dates with a single upfront amount and compare. History has no single right answer, and past performance never predicts future results.
Run your own DCA plan
Tip: we use the next trading day if the market was closed on your date.
Frequently asked questions
What is dollar-cost averaging in simple terms?
Investing the same amount of money on a regular schedule — monthly, quarterly, or yearly — no matter what the market is doing. It turns investing into a habit instead of a timing decision.
Does this DCA calculator include dividends?
Yes. We use adjusted closing prices, which account for stock splits and dividend reinvestment together, so the result reflects total return — not just price growth.
Is DCA better than investing a lump sum?
Historically a lump sum wins more often in rising markets because the money compounds longer. DCA wins on consistency and psychology — and it's the only option when you're investing salary as it arrives. Run both in the calculator and compare.
Is this financial advice?
No — If Invested is for education and entertainment only. Past performance does not predict future results. Verify any real decision with a licensed broker.