Investment Calculator
🏠 Free ToolSimulate your investment growth with dollar-cost averaging (DCA). Enter your monthly investment, expected return, time horizon, and initial lump sum to project your future portfolio value.
Start investing today
Open an investment account and start building your portfolio with automatic monthly investments.
How it Works
Our investment calculator simulates portfolio growth using dollar-cost averaging (DCA) combined with an optional initial lump sum. Enter your monthly investment amount, expected annual return, time horizon, and starting capital to see how your portfolio could grow.
The calculator computes the future value of your lump sum using compound growth and adds the future value of your regular monthly contributions. This gives you a realistic projection of your total portfolio value at the end of your investment period.
The growth curve chart shows your portfolio value over time, split between the amount you invested and the profit generated by market returns. Watch how the profit portion accelerates in later years as compound growth takes effect on a larger base.
Remember that all projections are based on a constant average return. Real market returns fluctuate year to year, and past performance does not guarantee future results. Use this tool as a planning guide and consider consulting a financial advisor for personalized advice.
Frequently Asked Questions
What is dollar-cost averaging (DCA)?
Dollar-cost averaging means investing a fixed amount at regular intervals regardless of market conditions. This strategy reduces the impact of volatility by buying more shares when prices are low and fewer when prices are high.
Is lump sum or DCA better?
Statistically, lump sum investing outperforms DCA about two-thirds of the time because markets tend to rise over time. However, DCA reduces risk and is psychologically easier for most investors.
What return should I expect from the stock market?
Global stock markets have historically returned 7-10% per year on average before inflation. A balanced portfolio with bonds may return 5-7%. These are long-term averages; short-term returns vary widely.
How long should I invest for?
Generally, the longer the better. A minimum of 5-10 years is recommended for equity investments to smooth out short-term volatility. For retirement planning, 20-30 year horizons are common.
Should I invest monthly or yearly?
Monthly investing is generally preferred because it provides more frequent dollar-cost averaging and aligns with most salary schedules. The mathematical difference between monthly and yearly investing is small.
Related Articles
The Complete Guide to Dollar Cost Averaging (DCA)
Learn how Dollar Cost Averaging works, why it reduces risk, and how to implement DCA with ETFs. Includes real examples, formulas, and comparison tables.
Inflation and Purchasing Power: How to Protect Your Wealth
Discover how inflation silently erodes your wealth. Historical European inflation data, real vs nominal returns, inflation-protected investment strategies, and tables showing purchasing power loss over time.
Compound Interest: The Eighth Wonder of the World
Master compound interest with the FV formula, Rule of 72, and real examples. See how starting early can multiply your wealth over 10, 20, and 30 years.