DCA vs Lump Sum Calculator
Compare dollar-cost averaging (periodic investments) vs investing a lump sum now using a synthetic return path or constant expected return — educational, not a forecast.
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Scenario
Lump sum vs phased investing
Lump invests everything at t=0. DCA spreads the same amount in twelve equal monthly buys during the first year, then both grow at the constant return you specify.
Advanced mode
Show a qualitative note — this toy model ignores volatility paths and path-dependent outcomes.
Results
Ending balances (deterministic)
Lump sum FV
LKR 118,029.08
DCA (12-mo spread) FV
LKR 116,129.49
Difference (lump − DCA)
LKR 1,899.59
Chart
Growth comparison
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Perspective
Historically, lump sum often wins in rising markets
More time in market usually matters, but DCA reduces timing risk emotionally and mechanically.
This tool uses your stated return assumption — real markets are not constant returns.
FAQ
Common questions
Is lump sum always better?
Not in every period. Lump sum tends to win on average in equities over long horizons, but DCA can reduce regret if markets dip right after investing.
Is this investment advice?
No. It is a mathematical illustration. Consult a licensed professional for personal advice.
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