Tools
Dollar-Cost Averaging
Model recurring buys versus a lump sum. See the trade-off between time-in-market and timing risk.
Comparison over the same horizon: invest it all now vs. $1,000.00 each month.
After 12 monthssame return assumed
Lump sum (invest now)$12,995.99
Dollar-cost averaging$12,449.93
Lump-sum advantage$546.07
Educational tool only — not financial advice. Assumes a single constant return, so lump sum always wins here; in reality DCA reduces the risk of buying at a top. It manages timing risk, not returns. See the full disclaimer.
Under one fixed return, investing sooner always wins — but real markets fall as well as rise, and spreading your buys removes the risk of putting it all in at a peak. DCA manages behavior and timing, not returns.