InsiderFlow › Tools › Dollar cost averaging simulator
What is saving and investing every month worth? Enter your monthly amount, expected return and years: see the final sum compared with simply stashing cash.
Indicative calculation for educational purposes: not a forecast nor financial advice.
DCA (dollar cost averaging) removes the timing problem: you invest the same amount every month, buying more when prices fall and less when they rise. It's the most common method for building capital from income.
The gap between investing and saving grows exponentially with the years: over 30 years at 7%, every dollar put into a DCA plan is worth on average more than double a saved dollar.
The most common rule of thumb suggests 10–20% of net income, after building an emergency fund of 3–6 months of expenses.
For most people a diversified global ETF is the most sensible core; single stocks add company-specific risk.