UK Stock Market

Pound Cost Averaging Calculator

Compare pound cost averaging (regular investing) vs lump sum across top 20 FTSE 100 stocks

What is Pound Cost Averaging?

Regular Investing (Pound Cost Averaging)

Invest a fixed amount at regular intervals (e.g., £500/month), regardless of share price. Buy more shares when prices are low, fewer when high. This smooths out market volatility over time.

Lump Sum Investing

Invest your entire amount at once, getting all your money working in the market immediately. Maximises time in market but requires larger upfront capital.

Our analysis: We compared £500/month regular investing vs investing the same total upfront for each stock over 3, 5, and 10 year periods.

5-Year Summary: Which Strategy Wins?

19
Lump Sum Wins
(95%)
1
Regular Wins
(5%)
Lump Sum
Overall Winner
across 20 stocks

Research shows lump sum investing outperforms regular investing approximately two-thirds of the time in rising markets.

All Stocks: Regular vs Lump Sum Results (5-Year)

£500/month regular investing vs £30,000 lump sum | Sorted by lump sum return

Stock Regular Value Regular Return Lump Sum Value Lump Sum Return Winner
RR
Rolls-Royce Holdings plc
£204,313 +581.0% £346,317 +1054.4% Lump Sum
BA
BAE Systems plc
£74,054 +146.8% £137,247 +357.5% Lump Sum
STAN
Standard Chartered PLC
£66,798 +122.7% £93,014 +210.0% Lump Sum
HSBA
HSBC Holdings plc
£58,546 +95.2% £83,905 +179.7% Lump Sum
NWG
NatWest Group plc
£58,740 +95.8% £80,428 +168.1% Lump Sum
SHEL
Shell plc
£45,266 +50.9% £71,592 +138.6% Lump Sum
CRH
CRH plc
£48,574 +61.9% £66,713 +122.4% Lump Sum
LLOY
Lloyds Banking Group plc
£53,822 +79.4% £66,593 +122.0% Lump Sum
BARC
Barclays PLC
£58,704 +95.7% £62,414 +108.0% Lump Sum
AZN
AstraZeneca PLC
£41,010 +36.7% £59,601 +98.7% Lump Sum
GLEN
Glencore plc
£39,598 +32.0% £54,858 +82.9% Lump Sum
BP
BP p.l.c.
£38,962 +29.9% £54,531 +81.8% Lump Sum
BATS
British American Tobacco p.l.c.
£45,842 +52.8% £49,043 +63.5% Lump Sum
NG
National Grid plc
£40,190 +34.0% £47,823 +59.4% Lump Sum
GSK
GSK plc
£40,374 +34.6% £47,050 +56.8% Lump Sum
CPG
Compass Group PLC
£33,915 +13.0% £46,667 +55.6% Lump Sum
REL
RELX PLC
£28,313 -5.6% £42,408 +41.4% Lump Sum
LSEG
London Stock Exchange Group plc
£30,890 +3.0% £37,828 +26.1% Lump Sum
RIO
Rio Tinto Group
£38,510 +28.4% £36,186 +20.6% Regular
ULVR
Unilever PLC
£32,387 +8.0% £33,506 +11.7% Lump Sum

Stocks Where Regular Investing Won (5-Year)

These stocks had enough volatility that pound cost averaging outperformed lump sum

Top Stocks for Lump Sum Investing (5-Year)

Stocks with the largest advantage for lump sum over regular investing

Key Takeaways

1.
Lump sum wins most of the time - In 19 out of 20 stocks (95%), investing everything upfront produced better returns than regular investing over 5 years.
2.
Regular investing wins in volatile stocks - For 1 stocks, pound cost averaging outperformed because price volatility allowed investors to buy at lower average prices during dips.
3.
Psychology matters - Regular investing's real advantage is making investing easier psychologically. It's easier to invest £500/month than £30,000 at once, which means you're more likely to actually invest.
4.
ISA-friendly - Regular investing fits well with monthly ISA contributions, helping you build wealth tax-efficiently over time.
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Disclaimer: This page is for educational purposes only. Past performance does not guarantee future results. This is not financial advice. Always consult an FCA-regulated financial adviser before making investment decisions.