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Simulates dollar-cost averaging (DCA) with compound growth. Hover the chart to compare your rate vs. 8% S&P 500 average minus inflation.
This guide explains the logic behind the defaults in the DCA Compound Growth Calculator.
Steady investing (Dollar Cost Averaging, DCA) and compounding over time outperform timing attempts.
| Term | Meaning | Typical Value | Why it matters |
|---|---|---|---|
| Nominal return | Total yearly growth before inflation | ~8% | Historical S&P 500 guidepost |
| Inflation | General price increases | ~2–3% | Reduces purchasing power |
| Real return | Growth after inflation | ~5–6% | Better wealth gauge |
Rule of 72: At ~8% nominal, money doubles about every 9 years.
