Calculate the benefits of dollar cost averaging
A great way to reduce the impact of market volatility is to invest set dollar amounts regularly over time. This strategy - known as dollar cost averaging - is a good approach if you have a long term investment goal and can make regular investments.
You can use the calculator below to compare the effect of investing a lump sum vs employing a dollar cost averaging investment strategy over a 12 month period. Simply select one of three hypothetical market scenarios from the drop-down menu, or enter your own unit prices manually, and enter a monthly investment value to calculate the benefit.
Learn more about our Regular Investor Plan.
This calculator is a useful tool to show how dollar cost averaging may assist you in obtaining your financial goals. Dollar cost averaging does not guarantee a profit and should not be seen as a way to maximise returns. This calculator is for information purposes only. You should not rely on it when deciding whether to make an investment, and you should note that past performance is not a reliable guide to future performance. The value of any investment you make may go down as well as up, as may the income you get from any investment, and your investment could be affected by changes in currency exchange rates. These calculations do not take into consideration any entry or ongoing fees or your individual financial circumstances, earning potential and potential to make the ongoing investments, the impact of taxation or changes to an individual's cost of living. In addition, the calculations do not include or account for future changes to taxation, legislation and other economic conditions such as or changes in inflation or interest rates. RaboDirect does not offer you financial or other advice and suggests that you seek advice from an independent financial or other advisor. RaboDirect does not warrant the accuracy of any figures contained in this calculator. RaboDirect is not liable for any loss you may suffer if you act based on this calculator. Any decision as to whether or not to make an investment is yours alone.