500 a month for five years vs 30,000 once
At a fixed 7% a year, end-of-month deposits, no fees: 500 a month for five years grows to about 35,597.93 (30,000 contributed, 5,597.93 growth). The same 30,000 invested once at the start reaches about 42,076.55.
At a fixed 7% a year, end-of-month deposits, no fees: 500 a month for five years grows to about 35,597.93 (30,000 contributed, 5,597.93 growth). The same 30,000 invested once at the start reaches about 42,076.55.
Lump-sum growth under the same inputs is about 12,076.55. In this constant-return model the lump sum wins — more money is invested earlier, so it compounds longer. Real markets move; fees and taxes are left out. Change the monthly amount, rate or years to see how the gap shifts.
This is a fixed-return illustration for education, not advice and not a forecast.
Try it: Dollar-cost averaging calculator.
General information only — not financial advice. See the disclaimer.