Dollar-Cost Averaging Calculator
Compare DCA (regular investing) vs lump sum. See how volatility affects outcomes, simulate 100 market paths, and find the best investment frequency.
Investment amount per period
Frequency
Return assumptions
Asset type (sets default volatility)
Shares ~15%, Bonds ~5%, Crypto ~60%. Used for the uncertainty bands only.
Lump sum comparison (optional)
Enter a one-time investment to compare against your DCA strategy.
Investment growth over time
Shaded band = 10th–90th percentile of 100 simulated paths at 15.0% annual volatility
Frequency Comparison
same monthly spend, 10yr| Frequency | Per period | Total invested | Final value |
|---|---|---|---|
| Weekly | $115 | $60,000 | $90,418 |
| Fortnightly | $231 | $60,000 | $90,485 |
| ▶ Monthly | $500 | $60,000 | $90,642 |
Monthly spend normalised to $500/month across all frequencies. More frequent investing captures more price averaging opportunities.
Monte Carlo Simulation — 100 paths, 10 years
Using 15.0% annual volatility and geometric Brownian motion. The range shows realistic outcomes — not guaranteed.
10th percentile (bear)
$59,958
Poor market outcome
50th percentile (median)
$86,532
Typical outcome
90th percentile (bull)
$146,966
Strong market outcome
DCA tips for Australian investors
- →Vanguard Diversified ETFs (VDHG, VDGR) auto-rebalance across global markets — ideal for DCA on the ASX.
- →BetaShares A200 and iShares IOZ give low-cost Australian market exposure (MER ~0.07%).
- →Pearler, Sharesies, and CommSec Pocket offer auto-invest features to automate your DCA schedule.
- →Avoid market timing — DCA removes the stress of deciding "when" to invest.
- →Franking credits from Australian shares can boost effective returns by 1–2% p.a. for most investors.
- →Inside super, contributions are taxed at 15% — one of the most tax-efficient DCA environments.
DCA Final Value
$90,642
After 10 years · 120 monthly contributions of $500
Milestone Snapshots
What is dollar-cost averaging?
DCA means investing a fixed amount at regular intervals regardless of price. When prices fall you buy more units; when prices rise you buy fewer. This averages your cost basis over time and removes the need to predict market movements.
Research from Vanguard shows lump sum investing beats DCA about two thirds of the time in equity markets — but DCA dramatically reduces regret risk and is the only practical strategy for most Australians investing from regular income.
Dollar-cost averaging in Australia
Dollar-cost averaging (DCA) is one of the most popular investment strategies for Australian investors using low-cost ETFs and index funds. Rather than trying to time the market — investing a large sum at the perfect moment — DCA involves investing a fixed amount weekly, fortnightly, or monthly regardless of what prices are doing. Platforms like Pearler, Raiz, and Sharesies have made automated DCA accessible to everyday Australians, allowing investments as small as $10 per week into diversified funds like Vanguard's VDHG or VDGR.
DCA vs lump sum: which is better?
Research consistently shows lump sum investing outperforms DCA about two-thirds of the time in rising markets — because money invested earlier has more time to compound. However, DCA wins when markets decline after a lump sum is deployed, and it reduces the psychological risk of investing at a peak. For most Australians investing from salary income, DCA is not a choice but a necessity — you invest what you have each pay cycle. The key lesson: both strategies beat not investing at all, and consistency matters more than timing.
Understanding the volatility simulation
The simulation uses geometric Brownian motion — the same model underpinning options pricing — to generate 100 plausible market paths. Each path applies random period-by-period returns drawn from a log-normal distribution with your chosen annual return and volatility. The 10th and 90th percentiles give a realistic range of outcomes: the 10th represents a poor market decade, the 90th a strong one. Real markets are fatter-tailed than this model suggests — crashes and booms are more extreme than any normal distribution predicts.
How to start DCA investing in Australia
To start DCA investing in Australia: 1) Open a brokerage account (Pearler, CommSec, SelfWealth, or Stake). 2) Choose a low-cost diversified ETF — Vanguard VDHG (high growth), VDGR (growth), or BetaShares DHHF are popular choices. 3) Set up a recurring bank transfer and auto-invest schedule. 4) Avoid checking daily — DCA works over years, not days. Most brokers charge $3–$10 per trade, so monthly investing into a single fund keeps costs manageable. Over a 10-year period, the difference between weekly and monthly investing is typically small — consistency matters far more than frequency.