Tools 5 min read

DCA Calculator

Dollar Cost Averaging reduces risk by investing a fixed amount at regular intervals, regardless of market conditions.

How DCA Works

The mathematics behind consistent investing.

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DCA means investing €500 every month regardless of whether the market is up or down. When prices are high, you buy fewer shares. When prices are low, you buy more. Over time, your average cost per share tends to be lower than the average market price. Studies show DCA performs within 2-3% of lump sum investing 66% of the time, while dramatically reducing stress and timing risk.

DCA vs Lump Sum Investing

Which strategy wins?

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Lump sum wins approximately 66% of the time because markets trend upward. But DCA wins on risk management: Lower maximum drawdown, no timing stress, better for regular income investors, psychologically easier. Best approach: Lump sum for windfalls if you can handle volatility, DCA for regular savings. The best strategy is the one you actually stick with.

Setting Up Your DCA Plan

Automate your wealth building.

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Step 1: Choose your investment (broad market ETF like VWCE). Step 2: Set your amount (start with what you can sustain). Step 3: Choose frequency (monthly is optimal for most). Step 4: Set up automatic transfers and purchases. Step 5: Do not check daily. Step 6: Review and adjust annually. Platforms with free DCA: Trade Republic, DEGIRO, Interactive Brokers.