Free DCA Simulator 2026: Dollar Cost Averaging

Compare regular investing (DCA) to lump sum investing

Parameters

Monthly amount (DCA)

Amount invested each month

Lump sum amount

One-time investment

Duration (years)

Expected annual return (%)

Annual volatility (%)

Standard deviation of annual returns

DCA final capital

83 730 €

after 15 years \u00b7 7 % annual return

Lump sum outperforms

Total invested (DCA)

54 000 €

+55,06 %

Total invested (lump sum)

50 000 €

+162,08 %

DCA average cost

169 €

per unit

Risk reduction

69,02 %

Reduced standard deviation through averaging

Capital projection

Comparison summary

DCA capital83 730 €

Lump sum capital131 042 €

DCA gains+29 730 €

Lump sum gains+81 042 €

What is DCA?

Dollar Cost Averaging (DCA) means investing a fixed amount at regular intervals, regardless of market conditions. This strategy reduces the impact of volatility on your investment.

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Risk smoothing

By investing regularly, you buy more shares when prices are low and fewer when they are high.

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Investment discipline

DCA eliminates market timing stress and enforces a savings routine.

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Accessible to all

No large capital needed: start with small monthly amounts.

DCA vs Lump Sum: the comparison

Statistically, lump sum outperforms DCA about 2/3 of the time in bull markets. But DCA significantly reduces maximum drawdown risk.

DCA (regular investing)

Less volatility, smoothed average cost, ideal if you don't have capital upfront.

Lump Sum (all at once)

Higher average return over long periods, but immediate risk exposure.

How to set up a DCA strategy?

Follow these steps to implement your DCA strategy.

Choose an asset

Global ETF (MSCI World), S&P 500 or diversified portfolio.

Set the amount

A fixed amount you can invest monthly without impacting your budget.

Automate

Set up an automatic transfer to your investment account.

Stay invested

Stay invested for the long term, ignore short-term fluctuations.

Frequently asked questions

Is DCA always better?▼

No. In a structurally bullish market, lump sum investing gives a better average return. DCA is mainly useful for reducing risk and when you don't have all the capital available immediately.

How much should I invest with DCA?▼

There is no minimum amount. Consistency is key. Even €50-100 per month in a global ETF can generate significant capital over 20-30 years through compound interest.

What should I invest in with DCA?▼

Index ETFs (MSCI World, S&P 500) are the most popular assets for DCA. Prefer a tax-advantaged account first, then a regular brokerage account.

Should I stop DCA during a crash?▼

On the contrary! DCA is most effective during downturns: you buy more shares at reduced prices. Maintaining contributions during crises is the key to long-term success.