Dollar-cost averaging projects the effect of recurring investments on a portfolio. It tracks invested capital, accumulated units, average cost, future value, fees and inflation-adjusted value. The goal is not to promise a return, but to compare a disciplined purchase schedule with alternative investment timing.
Total invested = initial investment + recurring contribution × periods; average cost = total invested / accumulated units
At each period, the portfolio is revalued using the estimated net return, then the contribution is added. Units purchased depend on the unit price at that period. Average cost equals total invested ÷ accumulated units, and real value divides projected value by cumulative inflation.
Example matching the default settings: 10,000 initially, 500 per month for 20 years, assumed 7% annual return, 0.5% annual fees, 2% inflation and contributions growing 2% per year. Total invested reaches about 155,784, projected value about 314,932, potential gain about 159,147 and average cost about 180.59 per unit.
The result shows the saving discipline and possible compounding effect. A high future value can come from contributions as much as from return. Average cost helps explain unit accumulation, but it does not protect against a prolonged market decline.
The method invests on a schedule rather than on a market-timing guess. This can support discipline, especially when prices move sharply up and down.
When price falls, the same contribution buys more units; when price rises, it buys fewer. The calculation follows this mechanism to estimate total units held.
Average cost divides invested capital by units owned. It gives a simple view of the overall acquisition cost, but it does not replace analysis of current portfolio value.
The simulator subtracts annual fees from the estimated return before projecting value. A small fee difference can move the final value over twenty years.
Real value adjusts the nominal projection for purchasing power. It helps avoid confusing a large future amount with a fully usable gain.
A scheduled strategy does not guarantee profit. It spreads entry points, but the outcome still depends on asset performance and time invested.
For a financial decision, do not keep only the payment, return or final amount. Check total cost, fees, duration, possible inflation and available cash flow to understand what the result really implies. This extra context makes the estimate easier to compare with a quote, statement or long-term plan.
Increase the rate, lower the expected return or add fees to see how resilient the result is. If a small change removes the safety margin, treat the number as a fragile assumption rather than a secured target. Keep the cautious case visible before committing money.
An online finance calculation helps prepare comparisons, but it does not replace a bank offer, statement, tax document or contract. Before acting, reconcile the result with official documents and rules that apply to your situation.
Keep the entered values, date, currency, rate, term and fees included or excluded. This record makes the simulation repeatable and explains why two similar outputs can lead to different decisions.
Assumption: 10,000 initial, 500/month, 7% return, 0.5% fees, 2% inflation, contributions growing 2%/year.
| Year | Total invested | Projected value | Real value |
|---|---|---|---|
| 1 | 16,000 | 16,827 | 16,497 |
| 5 | 41,224 | 50,213 | 45,479 |
| 10 | 75,698 | 109,108 | 89,507 |
| 20 | 155,784 | 314,932 | 211,940 |
Recurring deposits can be easier to follow than a single decision about the perfect entry point.
The method buys at several prices, which can reduce psychological pressure during drawdowns.
Increasing deposits can strengthen the path if income actually rises.
The longer the horizon, the more carefully return, fee and inflation assumptions should be tested.
This projection is general investment information, not personalized advice. It assumes a steady return while real markets fluctuate. It does not include exact taxation, trading costs, crisis periods, asset selection or personal risk tolerance.
No. It spreads purchases over time, but the portfolio remains exposed to markets and can lose value.
It shows the average acquisition cost of units purchased and helps explain accumulation over time.
Frequency should fit your budget. Monthly, quarterly or annual schedules can be tested.
Because a high future value may represent less purchasing power than it appears to.
Project your future wealth through disciplined contribution and time.
Measure the real impact of fees on investment growth: entry fees, management fees, exit fees, inflation, net return and final value after costs.
Analyze the total profitability and yield of capital investments.
Calculate future value from capital, rate, duration and compounding frequency, with interest earned and growth scenarios.
Calculate the monthly contribution required to reach your savings goal, visualize capital growth, and compare realistic optimization scenarios.
Calculate the impact of inflation on money: future cost, remaining purchasing power, real loss and scenarios over 5, 10, 20 or 30 years.