Lump sum vs dollar-cost averaging calculator

The same dollars invested today versus spread over years, on one return. On a constant positive return the lump sum wins because it is invested longer. That is an identity, not a forecast.

The calculator

Lump sum ending$270,263
DCA ending$178,885
Gap (lump − DCA)$91,378
DCA per year$10,000

When it flips

A crash after the lump-sum day can make waiting look wise in hindsight. This page does not simulate that path; it shows the cost of waiting on a stated return. For crash timing see the crash-year sequence calculator.

Assumptions

Ordinary annuity (DCA at year end), one rate, no cash yield while you wait, no taxes, no fees.

Frequently asked questions

Does lump sum beat dollar-cost averaging?
On a constant positive return, yes — the money is invested longer. That is a teaching identity, not a forecast. Markets that fall after the lump sum can reverse it.
What does this calculator assume?
One real return, contributions at year end, the same total dollars either way. No taxes, no fees, no cash yield while you wait.
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