Is lump sum better than dollar-cost averaging?

Historically, yes most of the time, because markets rise more often than they fall. DCA can still be useful as a behavioral tool.

How long should I dollar-cost average?

If you choose DCA, shorter periods such as 3 to 12 months are commonly used; very long delays mostly keep money in cash.

Compare investing a windfall all at once with spreading purchases over time using more than 150 years of S&P 500 market history.

Because markets rise more often than they fall, lump-sum investing has historically beaten dollar-cost averaging in many 12-month windows.

But the best mathematical answer is not always the best behavioral answer if a sudden drop would cause panic selling.

Dollar-cost averaging can reduce regret and smooth the entry experience for a large inheritance, bonus, or cash position.

The calculator helps weigh expected return against the emotional risk of investing everything right before a bad market year.