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DCA vs Lump Sum Calculator

Compare the final value of investing a sum all at once against spreading the same cash in equal monthly instalments.

Enter your numbers

Total amount

Example: 120000

Months to spread

Example: 12

Annual return

Example: 12

Result

Currency

Figures are computed on your device; nothing is sent anywhere.

Formula

lumpSumValue = totalAmount * (1 + monthlyRate)^months; dcaValue = sum of monthlyAmount * (1 + monthlyRate)^remainingMonths; difference = lumpSumValue - dcaValue

How the calculation works

The calculator divides your total amount by the number of months to get the equal monthly instalment.

It grows the lump sum for the full period and each instalment for the months still remaining after it is invested.

It subtracts the averaged result from the lump sum figure to show how much investing early added or cost.

Common mistakes

Comparing a lump sum invested at the very start against instalments made at the end of each month.
Assuming DCA always wins, since in a steadily rising market the early lump sum usually ends up ahead.

When to use it

Use it to see how much a rising market rewards investing early rather than drip feeding the same money.
Use it to judge whether dollar cost averaging is worth the lower return when you fear a sudden price drop.

Worked example

Investing 120,000 at once over 12 months at 12 percent a year gives 135,219, while 10,000 a month gives about 126,825, a difference of 8,394.

Lump-sum value 134,400.00

DCA value 126,464.98

Difference ৳-7,935.02

Common questions

Why does the lump sum often beat DCA?

Money invested earlier has more time to compound, so in a market that trends up the early lump sum normally finishes ahead of monthly drip feeding.

Last updated: 2026-10-03