Got a windfall? Investing it all at once usually beats spreading it out, but averaging in reduces regret. See the math.
How this is calculated Embed on your siteUpdated October 2026
If you have a large amount to invest, from an inheritance, a bonus or the sale of a house, you can put it all in at once or spread it out over several months. Spreading it out is called dollar-cost averaging (DCA). This calculator compares the two at a steady expected return. With the defaults, $60,000 invested all at once at an 8% annual return grows to $64,980 after 12 months, while investing $5,000 a month over the same year ends at $62,665, about $2,315 less.
Markets rise more often than they fall, so money that waits on the sidelines tends to miss gains. The longer you take to invest, the bigger that drag:
| Spread over | Lump sum after the period | DCA after the period | Lump sum ahead by |
|---|---|---|---|
| 3 months | $61,208 | $60,804 | $404 |
| 6 months | $62,440 | $61,416 | $1,024 |
| 12 months | $64,980 | $62,665 | $2,315 |
| 24 months | $70,373 | $65,265 | $5,108 |
$60,000 at an 8% expected annual return.
Real markets don't move in a straight line, which is where DCA earns its place. A widely cited 2012 Vanguard study of U.S., U.K. and Australian markets found that investing a lump sum immediately beat spreading it over 12 months about two-thirds of the time. The other third of the time, usually when markets fell soon after the start, averaging in came out ahead.
If you choose DCA, keep the period short (three to six months gives up little expected return), set the schedule in advance and automate it, and keep the waiting money in a high-yield savings account or money market fund so it still earns something.
Contributing to a 401(k) from every paycheck is also called dollar-cost averaging, but there is no lump sum to compare against: you invest money as you earn it, which is exactly the right thing to do. This calculator is about a sum you already have in hand.
See how a lump sum grows over the long run with the compound interest calculator, or check whether your portfolio mix fits your timeline with the asset allocation calculator. If the money is for retirement, the Monte Carlo calculator shows how market swings affect the plan.
On average, investing a lump sum right away ends higher because the money is invested longer. Historical studies found it won about two-thirds of the time. Dollar-cost averaging reduces the regret of investing just before a drop.
Investing a fixed amount at regular intervals, such as monthly, instead of all at once. It spreads your purchase prices over time.
If you choose to, three to six months is common. Longer periods give up more expected return while the cash waits.
It is reasonable if a large drop right after investing would make you sell or lose sleep. Otherwise, investing it promptly in a mix that fits your goals usually wins over time.
No. It uses a steady average return, which is why the lump sum always comes out ahead here. Real outcomes depend on the path the market takes.
Source for historical comparison: Vanguard, "Dollar-cost averaging just means taking risk later," 2012. The calculator compounds monthly at your expected return. Not investment advice.