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Dollar-cost averaging
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Dollar-cost averaging means investing the same amount on a schedule. Enter a monthly amount, an expected return and a horizon to project the future value.

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How the projection works

Each monthly contribution compounds at the return you set for the months it stays invested, so the earliest deposits grow the most. Adding them all gives the future value; subtract what you put in to see how much is growth. It uses monthly compounding.

500/mo, 7%, 20 yr
invested 120,000, ends about 260,000

What to expect

Real returns are not steady; markets rise and fall, and dollar-cost averaging smooths your entry price by buying more units when prices are low. Treat the number as a planning estimate at an average rate, not a guarantee, and note that inflation lowers what the final sum buys. Compare a lump sum with compound interest.

Common questions

Dollar-cost averaging FAQ

Investing a fixed amount at regular intervals regardless of price, which averages your purchase cost over time.

No single year matches the average, but a long-run average is a reasonable planning assumption. Real markets are volatile.

No. The figure is in today’s contribution terms; inflation reduces the future purchasing power of the result.

This assumes end-of-month contributions, the common convention. Start-of-month would grow slightly more.