This calculator compares two ways to put the same money to work: investing it all at once (lump sum) or spreading entry across recurring contributions (DCA).
DCA vs Lump Sum
Compare investing all at once with spreading the entry over months to reduce anxiety and visualize the cost of waiting.
SIMULATOR
Your numbers
Recalculates instantly as you move the sliders.
ESTIMATED RESULT (LUMP SUM)€77,394
FINAL DCA€72,983
ADVANTAGE€4,410
HORIZON20 years
Lump sum final€77,394
DCA final€72,983
Compare the final capital of each strategy. In this scenario, lump sum wins.
Save my comparison of €77,394. Lump sum wins by €4,410 in this scenario if the market rises steadily.
Enter the total amount available, how many monthly installments you would use for DCA, the annual return assumption and the horizon. The tool simulates both paths side by side.
The lump-sum path invests the full amount on day one. The DCA path invests equal monthly amounts until the same total capital is deployed. Both use the same monthly return so the comparison isolates timing.
With $12,000, investing all at once exposes the full amount immediately. Investing $1,000 per month reaches full exposure after 12 months, so early months compound on less capital.
Lump sum often leads in rising markets because money compounds earlier. DCA can reduce regret and timing stress, which may help someone stick to the plan.
DCA reduces timing risk, not asset risk. Waiting indefinitely for the perfect moment can become an unplanned cash position.
Assumptions: same return path for both strategies, no trading fees and no tax effects. Real markets do not move smoothly month by month.
CNMV — Investor Education · Bank of Spain — Financial Education
DCA vs Lump Sum, with context
Which usually ends higher?
Historically, lump sum often does, because markets tend to rise over long periods and capital compounds earlier.
Does DCA reduce risk?
It reduces entry-timing risk, not the risk of the asset itself.
What return do I use as a scenario?
Use the same assumption for both paths to keep the comparison clean.
What about fees?
If a broker charges per trade, DCA can be more expensive because it uses more transactions.
Illustrative results for educational purposes · Educational information, not financial advice.