DCA & Compound Interest Calculator
See how regular monthly investing grows over time with compound returns.
Projection
Enter a contribution, return rate, and time horizon to see results.
Frequently Asked Questions
The Power of Recurring Investing & Compounding
Future value = initial × (1+r)^n + monthly × [ ((1+r)^n − 1) ÷ r ] (r = monthly rate, n = months)
What is recurring investing?
Recurring investing means contributing a fixed amount on a regular schedule instead of investing a lump sum all at once. You automatically buy less when prices are high and more when they are low, which naturally smooths out your average purchase price. It lets you start with small amounts and removes the pressure of timing the market—ideal for beginners.
The snowball effect of compounding
Compounding means the returns your money earns go on to earn returns of their own. The difference looks small at first, but over time your balance grows exponentially. Two people who contribute the same amount can end up with very different totals depending on whether returns are reinvested. This is the core idea of making time work for you.
Why a longer horizon wins
Because time (n) acts as an exponent, the compounding effect grows dramatically the longer you stay invested. At the same return rate, the gap between 10 and 30 years of contributions is far more than threefold. That is why starting early and staying invested is considered the most powerful strategy of all.
Things to keep in mind
This calculator assumes a steady, identical return every month—a simplified model. Real markets are volatile and returns can be negative. It also excludes taxes, trading fees, and inflation, so your real return may be lower. Use a conservative return rate and treat the result as a reference, not a promise.