Dollar Cost Averaging Calculator
Calculate the future value of regular fixed-amount investments over time.
Future Value
$499,573.96
$120,000
Total Invested
$379,573.96
Total Growth
How This Works
Investing a fixed amount every month lets each contribution compound for a different length of time — early contributions grow the longest. Over many years, the compounding growth typically outweighs the total amount contributed.
Formula
FV = PMT × (((1+r)ⁿ − 1) ÷ r) × (1+r)
where PMT = monthly amount, r = monthly rate, n = number of months
where PMT = monthly amount, r = monthly rate, n = number of months
Example
$500/month at 12% for 20 years grows to roughly $500,000 — with only about $120,000 of that actually contributed.
Frequently Asked Questions
What does $500/month become after 20 years at 12%?
$499,573.96 — $120,000 invested plus $379,573.96 in growth.
Are returns guaranteed?
No — this assumes a constant annual return for illustration. Actual investment returns vary and aren't guaranteed.