How is this different from a compound interest calculator?

A compound interest calculator usually focuses on a single lump sum compounding forward. DCA flips the focus to the monthly contribution as the engine — you keep dripping money in over decades, every dollar gets a slightly shorter compounding window than the one before it, and the total grows from contributions plus compound growth on each. Use a compound interest calculator when you have a lump sum sitting still; use this when you're investing on a schedule.

What return rate should I use — 7%, 10%, or 12%?

Depends on the market and what you want to model. Long-run broad-market equity returns are typically modeled in the high single digits real, low double digits nominal — but vary widely by region, period, and instrument. Bond-heavy portfolios run lower, around 4–6%. Pick a rate that matches your intended portfolio, and run a second pass at a more conservative number to see the downside.

Does this account for inflation, fees, or taxes?

No — the result is a gross, nominal projection. To approximate a real (inflation-adjusted) result, plug in your expected return minus inflation (e.g. 7% real instead of 10% nominal). Fees (expense ratios, advisor fees) eat directly into your effective return; subtract them from the rate. Taxes depend on the account type (taxable, IRA, 401k, ISA, NPS) and your jurisdiction, so this calculator stays out of that. The compound projection here is locale-agnostic; it does not adjust for any specific account's tax rules or contribution caps.

What happens if I miss a month or two of contributions?

A few skipped months barely move the needle on a multi-decade horizon. The math assumes you contribute every month, but missing 2 of 360 contributions removes about 0.5% of the lifetime input — and the missing contributions are the early ones least missed (or the late ones with the least time to compound). Consistency over decades matters far more than a perfect contribution streak.

FINFinancial

DCA Investment Calculator

See what consistent monthly investing builds over time. Enter what you can put aside each month, how long you'll keep it up, and your expected return — get the future value, what you actually paid in, and how much of the result is pure compound growth.

Currency

Monthly Contribution

Years Invested

years

Expected Annual Return

Starting Balance(optional)

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How It Works

Formula

FV = P \cdot \frac{(1 + r)^n - 1}{r} + PV \cdot (1 + r)^n

Where

$FV$: Final value at the end of the period
$P$: Monthly contribution
$PV$: Starting balance (lump sum already invested)
$r$: Monthly return rate (annual return ÷ 12, as a decimal)
$n$: Total months invested (years × 12)

Compounds your monthly contribution at the expected return / 12, month by month, then adds the future value of any starting balance. Future-value-of-an-annuity formula. Assumes you keep contributing the same amount through every market.

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