Investment Comparison

Lump sum investing historically outperforms DCA about two-thirds of the time in rising markets. However, DCA reduces the risk of investing right before a market crash. For Irish investors, the choice also depends on CGT timing — spreading disposals across tax years can utilise the €1,270 annual exemption.

Dollar-cost averaging (DCA) means investing a fixed amount regularly regardless of market conditions. This buys more shares when prices are low and fewer when prices are high, averaging out your entry price over time. It is particularly popular for monthly pension contributions.

If you have a large lump sum and a long time horizon (10+ years), investing it all at once is statistically likely to produce higher returns than DCA. Irish investors should consider the €1,270 CGT annual exemption when deciding when to realise gains.

For Irish beginners, monthly DCA into a diversified low-cost ETF inside a pension wrapper is a proven strategy. Pension contributions get tax relief at your marginal rate (20% or 40%), which is a significant advantage over investing outside a pension.

No — the calculator shows gross values before CGT. Irish CGT at 33% applies to gains above the €1,270 annual exemption. The "After 33% CGT" display gives an estimate but assumes one disposal at the end.

Each of the 3 scenario cards represents a different investment strategy. Edit the lump sum, monthly contribution, years, growth rate, and dividend yield for each. The chart updates automatically to show the differences.

With Irish CGT at 33% and the deemed disposal rule for ETFs (every 8 years), the choice between lump sum and DCA affects your tax position differently than in the UK. Direct shares avoid deemed disposal. Compare with our ETF Tax calculator.

A mixed approach — invest part as a lump sum and the rest via DCA — can be a good compromise in Ireland. It captures some immediate market exposure while maintaining the benefit of averaging in over time.

For a diversified global equity portfolio, 5-8% annual return before inflation is a common assumption. Irish investors should also consider currency risk on non-EUR investments, which can add or subtract 1-3% from returns.

Dividends in Ireland are taxed as income at your marginal rate (20% or 40%) plus USC and PRSI. Reinvesting dividends inside a pension wrapper avoids this tax drag. Outside a pension, dividends are taxed annually regardless of reinvestment.

For short horizons (under 5 years), consider lower-risk investments like deposits or bonds. Irish DIRT (Deposit Interest Retention Tax) at 33% applies to interest. For short-term investing, the lump sum vs DCA difference is small.

Compare 2-3 scenarios to see meaningful differences. Good combinations: lump sum vs monthly DCA, or conservative (5% growth) vs aggressive (9% growth) return assumptions. You can also compare different dividend yield strategies.