DCA / SIP Calculator
Project final portfolio value from monthly contributions at any expected return rate. DCA / SIP math with year-by-year growth table. Free.
DCA / SIP Calculator
Project the final value of a Dollar-Cost-Averaging (DCA) / Systematic Investment Plan (SIP) at any expected return rate. The math assumes monthly contributions, compounded monthly. Past performance does not guarantee future results — pick a conservative expected return.
Year-by-year growth
| Year | Cumulative contributed | Cumulative growth | Balance |
|---|
How to Use the DCA / SIP Calculator
Set your monthly contribution
What you can sustainably invest each month. For US 401(k) participants, this is the contribution that comes out of payroll. For taxable accounts (Vanguard, Fidelity, Schwab), this is your DCA amount.
Pick an expected return rate
Conservative (real, after inflation): 5-6% for diversified equity. Moderate (nominal): 7-8%. Aggressive: 9-10%. The S&P 500 has averaged 9.5% nominal / 6.5% real over the last 100 years. Vanguard's 2024 Capital Markets Assumption forecast is 5-7% nominal over the next 10 years — lower than historical.
Set your investment horizon
Retirement planning is typically 25-40 years. Short-term goals (house down payment, child's education) are 5-15 years. The longer the horizon, the more compounding dominates contributions — at 30+ years, growth typically exceeds total contributed.
Read the year-by-year table
The table shows how balance grows over time. Notice the acceleration in later years — that's compounding. Year 25 typically has 2× the dollar growth of Year 15 even with the same monthly contribution, because the larger balance earns more interest.
Dollar-Cost Averaging — The Boring Strategy That Wins Most Years
What DCA Actually Does
Dollar-cost averaging (DCA, "SIP" in India / parts of Asia) means investing a fixed dollar amount on a fixed schedule — typically monthly — regardless of market conditions. The mechanic is simple: when prices are high, your fixed dollar amount buys fewer shares; when prices are low, it buys more. Over time, this naturally lowers your average cost per share compared to a buy-and-hold strategy that purchases everything at one point. Vanguard, Fidelity, Schwab, Robinhood, Wealthfront, and every major US brokerage offer automated monthly DCA into index funds, mutual funds, and ETFs.
The math: a USD 500 monthly investment at 7% expected annual return over 25 years produces about USD 405,000 at the end — from total contributions of USD 150,000. That's USD 255,000 of growth, 170% over contributions. Over 30 years, the same USD 500/mo grows to USD 610,000 — the extra 5 years adds USD 205,000 (50% more growth) because the larger balance in those last years has more compounding base. Compound growth is exponential, not linear, and DCA harvests that.
The DCA-vs-Lump-Sum Debate (And Why It Matters Less Than You Think)
Academic studies (Vanguard, Morningstar) consistently show that lump-sum investing outperforms DCA roughly 65-70% of the time over 10+ year horizons, because markets trend up over time and DCA's gradual approach loses out on early gains. Vanguard's 2023 study found lump-sum beats DCA by an average of 2.4 percentage points in cumulative return for a 10-year horizon. But this is for the rare situation where you already have a lump sum — for the vast majority of investors, money comes in monthly via paycheck, making DCA the default.
The behavioural argument for DCA is the more important one: it removes the timing decision. Most investors who try to time the market underperform DCA significantly because they hesitate at market lows (when DCA buys cheapest) and buy aggressively at market highs (when DCA naturally slows). The DALBAR Quantitative Analysis of Investor Behavior study shows retail investors typically underperform the S&P 500 by 3-5 percentage points per year due to bad timing. DCA's structural removal of timing decisions captures the "average return" that timing-attempting investors miss.
"USD 500/month at 7% expected return over 25 years produces USD 405,000. Total contributed: USD 150,000. Growth from compounding: USD 255,000 — 170% more than what you put in."
Real Returns vs Nominal Returns (Inflation Matters)
The 7% S&P 500 historical real return is the number you should use for purchasing-power planning. Nominal returns (10% historical, 5-7% forecasted) include inflation, which erodes purchasing power. A USD 1M nominal portfolio in 2055 is worth roughly USD 410,000 in 2026 purchasing power at 3% inflation — that's the real wealth you're projecting. The Rule of 72 captures this: at 3% inflation, prices double every 24 years, so USD 1M nominal becomes USD 500K real after 24 years.
For aggressive savers using this tool: enter the real expected return (5-6%) to project purchasing power directly. For people thinking in nominal terms (which is how brokerage statements display), enter 7-8% and apply an inflation discount mentally. Most retirement planning targets a nominal dollar amount (e.g., "USD 1M by age 65") and uses the 4% safe-withdrawal rule on top — meaning USD 40K/year in nominal income at retirement, with inflation eating purchasing power over the 30-year retirement.
10 Facts About DCA / SIP
S&P 500 long-run nominal return: 9.5% / year over the last 100 years (NYU Stern, Damodaran).
S&P 500 long-run real return (inflation-adjusted): 6.5% / year. The number that matters for purchasing-power planning.
Vanguard 2024 CMA forecast: 5-7% US equity nominal returns over the next 10 years — lower than historical due to valuation start point.
USD 500/month at 7% over 25 years = USD 405,000. Total contributed: USD 150,000. Compounding does 63% of the work.
Lump-sum investing beats DCA in 65-70% of 10-year periods (Vanguard), but DCA wins behaviourally because it removes timing decisions.
DALBAR's annual study shows retail investors typically underperform the S&P 500 by 3-5pp/year due to bad timing.
The US 401(k) employer match is the highest-return DCA available — a 50% or 100% instant return on contributions up to the match cap.
Vanguard VTI (Total US Stock Market) has expense ratio of 0.03% — costs USD 30/yr per USD 100K invested.
The 4% safe withdrawal rule (Trinity Study) suggests a USD 1M retirement portfolio can sustain USD 40K/year for 30+ years.
USD 1M nominal in 30 years = roughly USD 410K in 2026 purchasing power at 3% inflation. Plan in real dollars.
Frequently Asked Questions
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For diversified US equity over 20+ years: 7% real (inflation-adjusted) or 10% nominal as a historical reference. Vanguard's 2024 forecast is more conservative — 5-7% nominal over the next 10 years due to high starting valuations. For purchasing-power planning, use 5-7% real. For nominal-dollar targets, use 7-8% nominal. Avoid using 10%+ — that's the historical average for one specific 100-year window and may overstate forward returns.
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Not directly — you decide. If you enter a nominal expected return (e.g., 7-10%), the projected balance is in nominal dollars; subtract inflation mentally for purchasing-power. If you enter a real expected return (e.g., 5-6% after subtracting expected inflation), the projected balance is in 2026 purchasing power directly. Both approaches are valid; pick one and be consistent. Most retirement-planning frameworks (Trinity Study, 4% rule) use nominal returns with inflation-adjusted withdrawals.
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Statistically, no — lump-sum beats DCA 65-70% of the time over 10+ year periods because markets trend up. Vanguard's 2023 study put lump-sum's average advantage at 2.4 percentage points cumulative return. But that's for the rare case where you already have a lump sum. For most investors, money arrives monthly via paycheck, and DCA is the default. DCA's real advantage is behavioural: it removes the timing decision that retail investors typically get wrong by 3-5pp/year (DALBAR data).
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Always, before any other investment. A 50% match on the first 6% of salary is an immediate 50% return on contribution — no investment in any asset class matches that. The standard prioritisation: (1) 401(k) up to full match; (2) high-rate debt payoff if APR > 6-7%; (3) Roth IRA up to limit (USD 7,000 in 2026); (4) max 401(k) at USD 23,500/yr; (5) HSA if eligible (triple tax advantage); (6) taxable brokerage. Run our Personal Loan Payoff Calculator to compare debt payoff math.
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The Boglehead three-fund portfolio is the canonical answer: ~60% US total market (Vanguard VTI or Fidelity FZROX), ~30% international (VXUS or FZILX), ~10% bonds (BND or FXNAX). Expense ratios should be under 0.10%. For target-date funds (one-fund "set it and forget it"), Vanguard, Fidelity, and Schwab all offer 2055/2060/2065 target funds with expense ratios around 0.08-0.15%. None of this is investment advice — but the academic consensus around low-cost broad-market index funds is the strongest in personal finance research.
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Yes — the math is the same. For Traditional 401(k) and Traditional IRA, the projected balance is pre-tax (you'll pay income tax on withdrawals in retirement). For Roth 401(k) and Roth IRA, the projected balance is post-tax (qualified withdrawals are tax-free in retirement). HSA grows tax-free for medical expenses and effectively tax-free for non-medical after age 65 (you pay ordinary income tax, like Traditional IRA). The contribution limits differ: 401(k) is USD 23,500/yr in 2026, Roth IRA is USD 7,000/yr (USD 8,000 catch-up if 50+), HSA is USD 4,400 individual / USD 8,750 family.
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Not in this tool — it assumes a constant expected return. For variable-return modelling, you need a Monte Carlo simulator (Portfolio Visualizer, NewRetirement, Boldin all have these). The Trinity Study and its successors show that retirement portfolios with mostly equity (60-80%) have a 90%+ success rate over 30 years at a 4% withdrawal rate, even accounting for historical market crashes including 1929, 1973-74, 2000-02, and 2008. The constant-return assumption in this tool slightly overstates wealth accumulation compared to variable-return reality.
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US financial planning rule of thumb: 15% of gross income to retirement savings, including any employer match. At a USD 80K salary, that's USD 12K/year or USD 1,000/month total. If your employer matches 4%, you only need to contribute 11% yourself (USD 8,800/year = USD 730/month). For people behind on retirement savings (starting late), 20-25% is needed to catch up. Start with whatever you can sustain — USD 100/month is a real start; USD 50/month is a real start; never let "I can't save enough" be the reason to save nothing.
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Mechanically identical. Singapore's CPF Investment Scheme (CPFIS), POSB Invest-Saver, and Endowus offer monthly DCA into local ETFs and US-listed ETFs. Malaysia's PRS (Private Retirement Scheme) and Affin Hwang FundsPedia offer similar mechanics. Indonesia's Bibit and Bareksa platforms enable monthly DCA into local mutual funds and ETFs. The MSCI Emerging Markets index has averaged 6-8% nominal returns over the last 20 years (lower than S&P 500); MSCI World hits roughly 8-9%. ASEAN-targeted savers often combine local DCA (lower tax friction, local-currency exposure) with US-ETF DCA (higher historical returns, USD diversification).
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Depends on long-term residency plans. If you're staying in the US 10+ years, DCA in USD into low-cost US ETFs (VTI, VOO, VXUS) — that's the lowest-friction path and the standard US retirement-investing motion. If you plan to return to ASEAN long-term (5-10 years), split: maintain US 401(k)/Roth IRA contributions (the employer match alone usually justifies this), plus separately maintain home-country investing (CPF in Singapore, EPF in Malaysia, etc.) to avoid being forced to convert USD savings at unfavourable exchange rates upon return. A 60/40 US/home-country split is common for ASEAN expats with uncertain residency horizons.
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