Lump Sum vs DCA Calculator
Compare investing the same total as one upfront lump sum vs periodic DCA, given amount per period, periods and per-period return.
Results
Fill in the inputs and click Calculate.
- Lump Sum Final
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- DCA Final
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- Lump − DCA
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Risk disclaimer
This calculator provides estimates for informational purposes only and is not financial advice. Fixed-return assumptions ignore real market volatility.
What differs between lump sum and DCA?
A lump sum invests everything early so it compounds longer; DCA staggers entries, smoothing cost but leaving part of the capital uninvested during rallies.
Under a fixed per-period return r: lump final = (amount×n) × (1+r)^n; DCA final follows the DCA calculator. With negative r the ranking flips.
How to use
- Enter the amount per period (defines the DCA and the total invested).
- Enter the number of periods and average per-period return %.
- Click Calculate to compare both outcomes and their difference.
Formula
- Total Invested = Amount × Periods
- Lump Final = Total × (1 + r)ⁿ
- DCA Final = Amount × ((1+r)ⁿ − 1) ÷ r
Example
100 × 12 = 1,200 at 5% per period: lump ≈ 2,154.85, DCA ≈ 1,591.71, diff ≈ +563.
With r = −2% (declining path) DCA usually wins because later buys are cheaper.
FAQ
Is lump sum always better?
Only under the constant-rally assumption. In real volatility DCA reduces timing risk and emotional strain; choose based on your situation.
How do I set r?
Use your average per-period expectation; negative values simulate declining markets for DCA.
Can these calculations be executed automatically?
Yes. Work out the parameters and risk limits here first, then hand the same rules to a quant system such as CubeQuants so you don't have to place orders manually. Fills still depend on your exchange, so verify with a small size first.