📈 ETF Calculator
Calculate the future value of your ETF investments with dividend reinvestment and expense ratio (TER). See how fees impact your returns over time, compare scenarios, and plan your ETF savings strategy.
What Is an ETF Calculator?
An ETF calculator helps you project the future value of your exchange-traded fund (ETF) investments. It factors in expense ratios (TER), dividend yields, and reinvestment to give you a realistic picture of your investment's growth potential.
ETFs are known for their low costs, but even a small expense ratio can have a significant impact on your returns over decades. This calculator shows you exactly how fees affect your wealth, so you can make informed investment decisions.
How Does the ETF Calculator Work?
The calculator simulates your investment growth year by year using the following approach:
- Net Return: Expected return minus the expense ratio (TER).
- Dividends: Calculated as a percentage of the year-end balance, then either reinvested or taken as cash.
- Contributions: Monthly contributions are added and grow with the portfolio.
- Compounding: All earnings are reinvested and compound over time.
Future Value = Compounded growth of (initial investment + monthly contributions + dividends)
Why Use This ETF Calculator?
- Expense Ratio Impact: See exactly how much fees cost you over time.
- Dividend Reinvestment: Compare reinvesting vs. taking dividends as cash.
- Inflation Adjustment: See the real value of your investments in today's dollars.
- Full Schedule: View year-by-year growth with contributions, returns, dividends, and fees.
- Free & Private: No registration, no data storage , all calculations run in your browser.
❓ ETF Calculator FAQ
What is an expense ratio (TER)?
The expense ratio (or Total Expense Ratio , TER) is the annual fee charged by the ETF provider to manage the fund. It's expressed as a percentage of your invested assets. For example, a 0.20% TER means you pay $0.20 per year for every $100 invested.
Why does the expense ratio matter?
Even a small expense ratio can have a huge impact over decades. For example, on a $100,000 investment over 30 years at 8% returns, a 0.50% fee could cost you over $50,000 in lost growth. This calculator shows you the exact cost.
What is dividend reinvestment (DRIP)?
Dividend reinvestment (DRIP) means using your dividend payments to buy more shares of the ETF instead of taking them as cash. This allows your investment to grow faster through compounding.
What is a good expense ratio for an ETF?
For broad market index ETFs, expense ratios typically range from 0.03% to 0.20%. For sector or thematic ETFs, they may be 0.20% to 0.50%. Anything above 1% is considered expensive for an ETF.
What is the difference between expected return and net return?
Expected return is the gross return before fees. Net return is what you actually earn after subtracting the expense ratio. For example, 8% expected return minus 0.20% expense ratio = 7.80% net return.
How does inflation affect my ETF investment?
Inflation reduces the purchasing power of your money. If you enable inflation adjustment in the advanced options, the calculator shows your final value in today's dollars, giving you a more realistic picture of your future wealth.
What is a typical dividend yield for ETFs?
Dividend yields vary by ETF type. S&P 500 ETFs typically yield 1.5-2.5%. High-dividend ETFs may yield 3-5%. Growth ETFs may yield 0.5-1.5%. This calculator lets you set the yield that matches your ETF.
How accurate is this calculator?
This calculator provides accurate estimates based on standard financial formulas. However, actual returns, fees, and dividends vary. Use this as a planning tool and consult a financial advisor for personalized investment advice.
Is this calculator free to use?
Yes, this calculator is completely free to use. No registration or personal data storage is required. All calculations are performed in your browser.
What is the difference between an ETF and a mutual fund?
ETFs trade on exchanges like stocks and typically have lower expense ratios than mutual funds. Mutual funds are priced once per day and often have higher fees. This calculator focuses on ETFs, which are increasingly popular among investors.