Investing cadence
break-even calculator
Enter your broker’s minimum fees and contribution size. The calculator shows whether investing monthly or less often leaks less money — balancing explicit trade fees against the cost of sitting in cash.
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Two forces pulling in opposite directions
The right investing cadence is the one that minimises the sum of two costs — not just one.
Commission, minimum fee per trade, FX conversion, ticket charges. These are paid every time you buy. Investing less often means fewer trades and lower total explicit cost — especially when minimum fees punish small buys.
Money sitting in cash while markets compound. Investing more often keeps less cash waiting. The drag is proportional to the gap between market return and cash yield, multiplied by average waiting time.
Find your lowest-cost cadence
What this tells you — and what it doesn't
Your broker's minimum fee is penalising small monthly buys. Consider either (a) switching to a broker with a lower or zero per-trade minimum, or (b) investing less often with a larger trade size.
Waiting to invest is more expensive than your trade fees. Monthly (or even more frequent) investing makes sense. Look for a broker with low or zero minimums so you can invest often without penalty.
Looking for a broker with no per-trade minimums?
If minimum fees are driving your result, the fix is often the broker — not the cadence. Compare your options below.
Go deeper
Frequently asked questions
When does quarterly beat monthly investing?
Quarterly investing can beat monthly when your broker charges a meaningful minimum fee per trade and your monthly contribution is relatively small. Fewer but larger buys reduce the per-unit minimum-fee drag. This is most common with brokers like DEGIRO or Saxo Bank that have per-trade minimums.
What is cash drag in this context?
Cash drag is the opportunity cost of money sitting uninvested while waiting for the next buy date. If you invest quarterly, contributions from months 1 and 2 sit in cash before being deployed. The calculator approximates this using average waiting time: (N − 1) / 2 months, multiplied by the spread between market return and cash yield.
Should I pick the mathematically cheapest cadence?
Not necessarily. The cadence you will actually follow for years beats the theoretically optimal one you skip or second-guess. Consistency matters more than micro-optimising for a few euros per year. If monthly feels manageable, stick with monthly — the behavioral advantage outweighs small cost differences.
Does FX cost change depending on cadence?
If FX costs are purely percentage-based, the annual FX drag is roughly the same regardless of cadence — because the total annual amount invested is the same. Cadence matters most when you face minimum commissions, fixed ticket fees, or meaningful cash drag from waiting between buys. Use the optional "FX + execution friction" input if you want to include a simplified percentage-based FX cost.
Is this the same as the DCA vs lump sum question?
Related but different. This tool assumes you have a fixed monthly income to invest and asks how often to deploy it. DCA vs lump sum asks whether you should invest a windfall all at once or spread it over time. The two questions are complementary but not identical — see the DCA vs lump sum study for that angle.
What market return should I use?
A common planning assumption for a global equity portfolio is 6–8% nominal per year. Use lower assumptions (5–6%) to be conservative. The key output to watch is whether the result changes meaningfully across different assumptions — if the same cadence wins at 5%, 7%, and 9%, you have a robust answer.
QuantRoutine provides educational content only. Nothing on this page is an offer, solicitation, or recommendation to buy or sell any security or to open an account with any specific broker. Investments can lose value, and past performance does not guarantee future results. You are responsible for your own investment, tax, and legal decisions. Always review each broker's current terms, fees, and eligibility on their official website before opening or funding an account. Cash drag is estimated using a simplified average-waiting-time model and does not account for intra-month market volatility or exact contribution timing.