📊 DCA Calculator
Simulate Dollar Cost Averaging — invest fixed amounts periodically to smooth out market volatility.
⚙️ Investment Parameters
💡 What is Dollar Cost Averaging (DCA)?
DCA is an investment strategy where you invest a fixed amount at regular intervals regardless of market price. When prices are low, you buy more shares; when prices are high, you buy fewer shares. Over time, this lowers your average cost per share and reduces market timing risk.
Avoid investing everything at a market peak by spreading purchases over time.
Automates investing, reducing panic selling or FOMO buying during market swings.
Consistent long-term DCA investing harnesses the power of compound returns.
❓ FAQ
Who should use DCA?
DCA is ideal for investors with steady income who want to build wealth gradually without constantly monitoring the market.
Does DCA guarantee profits?
No investment strategy guarantees profits. DCA reduces timing risk but does not eliminate market risk. In prolonged bear markets, DCA will also generate losses, though typically less than lump-sum investing.
How does this calculator simulate returns?
It uses a Monte Carlo random walk model based on your expected annual return and volatility inputs. Results may vary slightly each time you calculate.