Compare investing a lump sum immediately versus spreading it out over time, across different market scenarios.
A rough first third followed by a stronger recovery — the case DCA is meant for.
Lump sum ending balance
$10,671
DCA ending balance
$11,241
Dollar-cost averaging came out ahead by $570 in this scenario. Try the "Downturn, then recovery" scenario to see the case where DCA reduces regret even if it doesn't always win on ending balance.
This simulator is informational only, not personalized financial advice. Each scenario uses a fixed, illustrative sequence of monthly returns — not a real market forecast — so you can see how timing affects the two strategies under the same average return.
Historically, investing a lump sum immediately has outperformed dollar-cost averaging in most market environments, simply because markets trend upward over time and more money is invested for longer. But DCA can reduce regret and volatility exposure if the market drops shortly after you invest — this simulator lets you compare both approaches across different scenarios instead of relying on a rule of thumb.
You can compare outcomes across different historical or hypothetical return sequences — including up markets, down markets, and flat or choppy periods — to see how sensitive each strategy is to timing.
It spreads out your entry price over time, which reduces the risk of investing everything right before a downturn, but it also means less time in the market on average — which cuts both ways.
There's no universal answer — common approaches range from a few months to a year. Use the simulator to test different schedules against your own lump-sum amount and timeline.
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