Lump Sum vs DCA Calculator
Compare investing a lump sum all at once versus spreading it out monthly.
Investment Details
Your Results
Final Balance
$246,340
Total Contributed
$50,000
Investment Earnings
$196,340
Real Value (after inflation)
$136,393
Investing $50,000 upfront plus $0/month at 8% for 20 years grows to $246,340. 80% of your final balance comes from investment returns — that's compound growth at work. In today's dollars, that's worth about $136,393.
Growth Over Time
Show Yearly Breakdown
| Year | Balance | Contributed | Earnings | Real Value |
|---|---|---|---|---|
| 1 | $54,150 | $50,000 | $4,150 | $52,573 |
| 2 | $58,644 | $50,000 | $8,644 | $55,278 |
| 3 | $63,512 | $50,000 | $13,512 | $58,122 |
| 4 | $68,783 | $50,000 | $18,783 | $61,113 |
| 5 | $74,492 | $50,000 | $24,492 | $64,258 |
| 6 | $80,675 | $50,000 | $30,675 | $67,564 |
| 7 | $87,371 | $50,000 | $37,371 | $71,041 |
| 8 | $94,623 | $50,000 | $44,623 | $74,696 |
| 9 | $102,477 | $50,000 | $52,477 | $78,540 |
| 10 | $110,982 | $50,000 | $60,982 | $82,581 |
| 11 | $120,193 | $50,000 | $70,193 | $86,830 |
| 12 | $130,169 | $50,000 | $80,169 | $91,298 |
| 13 | $140,973 | $50,000 | $90,973 | $95,996 |
| 14 | $152,674 | $50,000 | $102,674 | $100,936 |
| 15 | $165,346 | $50,000 | $115,346 | $106,129 |
| 16 | $179,070 | $50,000 | $129,070 | $111,590 |
| 17 | $193,932 | $50,000 | $143,932 | $117,332 |
| 18 | $210,029 | $50,000 | $160,029 | $123,370 |
| 19 | $227,461 | $50,000 | $177,461 | $129,718 |
| 20 | $246,340 | $50,000 | $196,340 | $136,393 |
About This Scenario
Studies show that lump sum investing beats dollar cost averaging (DCA) about two-thirds of the time, because markets tend to go up over time. However, DCA reduces the risk of investing at a market peak and can be psychologically easier. If you have a large sum to invest, the mathematically optimal choice is usually to invest it all immediately — but DCA is perfectly reasonable if it helps you sleep at night.
More Investment Scenarios
S&P 500 Returns
See how your money would grow invested in the S&P 500 index at its historical average return.
$100/Month Investment
Even $100/month can grow into a significant sum with time and compound returns.
$500/Month Investment
Calculate the long-term impact of consistently investing $500 every month.
$1,000/Month Investment
See how aggressively saving $1,000/month accelerates your wealth building.
Roth IRA Growth
See how maxing out your Roth IRA each year builds tax-free retirement wealth.
$10K One-Time Investment
See how a single $10,000 investment compounds over the decades.
401(k) Growth Calculator
Project your 401(k) growth including employer matching contributions.