How to Use the Dollar-Cost Averaging Return Calculator
Investing a fixed amount every month, rather than a lump sum, means your money enters the market at different times, which makes the overall average return hard to eyeball. This calculator takes your monthly contribution, investment period, and expected annual return to compute the estimated final value, total profit, and average return all at once.
The math assumes contributions land at the start of each month and start compounding immediately (an annuity-due compounding model), with the entered annual rate held constant for the full period. Real markets fluctuate month to month, so treat the result as a simplified estimate rather than a guarantee, and review the actual product's terms before making investment decisions.
Frequently Asked Questions
It divides your profit (final value minus total contributions) by the total contributions. This differs from the annual return rate.
It follows a typical recurring-investment schedule where each month's contribution starts earning that month's return right away.
Yes, this is a simplified calculation assuming the entered annual rate stays constant for the whole period.