Tools · Lump Sum vs DCADollar-Cost Averaging (DCA)Investing a fixed amount on a regular schedule regardless of price, to reduce timing risk.Full definition
Lump sum vs
dollar-cost averaging.
If you have a large amount to invest, should you deploy it all at once or spreadspreadThe difference between the market price of Bitcoin and what an exchange actually charges you, a hidden cost on top of stated transaction fees.Full definition it across months? Vanguard research (2012) found lump sum beats DCA about two-thirds of the time historically. This tool backtests a specific scenario using approximate monthly closes.
LUMP SUM (ALL AT START)
$0
Return: 0%
DCA (SPREAD)
$0
Return: 0%
DIFFERENCE
$0
Winner: --
HISTORICAL CONTEXT
Pick a start year and hit the button.
What this tool assumes
- S&P 500 backtest uses approximate monthly total-return closes (price + dividends reinvested).
- Bitcoin backtest uses month-end closes generated at every build from the site's CoinMetrics snapshot (data/btc.json); no dividends. Data through 2026-07-01.
- DCA schedule divides the lump sum equally across the selected months, starting at the start-year date.
- Uninvested DCA cash earns 0% while waiting to be deployed (no money-market yield), which biases results toward lump sum.
- Endpoint: S&P data runs through 2025-12; BTCBitcoin (BTC)The ticker symbol for Bitcoin, used on exchanges and in price quotes.Full definition through 2026-06.
- No transaction fees, taxes, or rebalancingrebalancingBuying and selling assets to restore your target portfolio split after market movements cause drift.Full definition are modeled.
- This is a single historical path. For probabilistic rollouts, see the Vanguard 2012 paper linked below.
Historical S&P and BTC monthly closes are approximate. Educational only; not financial advice.
HOW THIS IS CALCULATED
This tool runs entirely in your browser — no data is sent to any server. All formulas use standard financial math. Verify the methodology or inspect the source code in your browser's dev tools.