DCA Simulator
Simulate dollar-cost averaging strategies and compare with lump sum investing
Strategy Settings
What is DCA?
Dollar-Cost Averaging (DCA) means investing a fixed amount at regular intervals, regardless of price. This strategy reduces the impact of volatility and removes the stress of timing the market.
DCA Strategy
Lump Sum (Day 1)
Strategy Comparison
Lump Sum Wins!
Lump Sum earned $1,281.99 more
Periods
48
Frequency
Weekly
Price Change
+50.00%
Key Insights
DCA Advantage
Your average cost basis of $60,831.30 is higher than the starting price, despite buying at various price points.
Risk Reduction
By spreading 48 purchases over 12 months, you reduced timing risk and emotional decision-making compared to a single large purchase.
Removes Timing Stress
DCA eliminates the anxiety of trying to "buy the dip." You invest consistently regardless of market conditions, building wealth over time.
Averages Your Cost
Buy more when prices are low and less when prices are high. This naturally lowers your average cost basis over time.
Builds Discipline
Automated, consistent investing helps build good financial habits and prevents emotional trading decisions during market volatility.
Disclaimer: This simulator uses simplified price modeling for educational purposes. Actual market conditions are unpredictable. Past performance does not guarantee future results. This is not financial advice. Always do your own research.