New to this? Read the plain English guide first.
See what steady monthly investing could become over time.
Dollar cost averaging means investing a fixed amount on a regular schedule. This calculator shows what regular contributions could grow to at an assumed yearly return.
Future value equals the monthly amount times the growth factor, which is one plus the monthly rate raised to the number of months, minus one, divided by the monthly rate. Total contributed equals the monthly amount times the number of months.
Investing $300 a month for 25 years at 7 percent a year gives roughly $243,000, of which $90,000 is what you contributed and the rest is growth. Real returns vary a lot from year to year, so treat the result as an illustration, not a forecast.
Play with the monthly amount and the years. Notice that adding a few more years or a bit more each month often matters more than finding a higher return. Automate the contribution so you do not have to decide each month.
Assuming a steady return, forgetting fees and stopping contributions after a market drop, which is when buying is cheapest.
Read dollar cost averaging explained and how to invest your first $1,000. See every term in the investing glossary, try more tools in investor tools, or test yourself in Stock Jeopardy.
For education only, not investment advice. Results are estimates based on the numbers you enter.