Project your exchange-traded fund performance net of fees.
Total Projected Balance
Total Principal Invested
Total Investment Gain
Estimated Fees Paid
Understanding Your ETF Investment Performance
Exchange-Traded Funds (ETFs) are powerful wealth-building tools, but calculating their long-term value requires accounting for more than just price appreciation. This ETF Calculator helps you visualize how compounding returns, expense ratios, and dividend reinvestment impact your final portfolio balance.
Key Components of ETF Returns
Expected Annual Return: The average percentage increase in the price of the ETF's underlying assets.
Expense Ratio: The annual fee charged by the fund manager. Even a 0.5% difference can cost thousands over several decades.
Dividend Yield: The annual dividend payments made by the fund, typically reinvested to accelerate growth.
Investment Horizon: The length of time you plan to hold the asset, allowing compound interest to work.
How to Use the ETF Calculator
To get an accurate projection, input your starting capital and your recurring monthly contributions. Be realistic with the Expected Annual Return; while the S&P 500 has historically returned about 10% annually, many investors use a conservative 7% to 8% for planning. Ensure you enter the Expense Ratio correctly, as this is a direct drag on your performance.
Example Calculation Scenario
If you start with $10,000 in a broad market ETF, contribute $500 per month for 20 years, and achieve a 8% annual return with a low 0.03% expense ratio and a 1.5% dividend yield, your portfolio could grow significantly. By the end of the period, your total balance would be heavily influenced by the reinvested dividends and the low management fees, potentially resulting in a total balance exceeding $350,000.
Why Expense Ratios Matter
Unlike traditional mutual funds, many ETFs offer "passive" management with very low fees. A high expense ratio acts like a reverse compound interest, eating away at your principal and your gains every single year. Using this tool to compare a 0.05% ETF vs. a 0.75% fund will clearly demonstrate why cost-efficiency is a cornerstone of successful long-term investing.
function calculateETF() {
var initial = parseFloat(document.getElementById('initialInvestment').value) || 0;
var monthly = parseFloat(document.getElementById('monthlyDeposit').value) || 0;
var years = parseFloat(document.getElementById('years').value) || 0;
var returns = parseFloat(document.getElementById('annualReturn').value) || 0;
var expense = parseFloat(document.getElementById('expenseRatio').value) || 0;
var dividend = parseFloat(document.getElementById('dividendYield').value) || 0;
if (years 0) {
fvContributions = monthly * ((Math.pow((1 + monthlyRate), months) – 1) / monthlyRate);
} else {
fvContributions = monthly * months;
}
var totalBalance = fvInitial + fvContributions;
var totalInvested = initial + (monthly * months);
var totalGain = totalBalance – totalInvested;
// Estimated Fees Calculation (Simplified: Average Balance * Expense Ratio)
// For more accuracy, we estimate based on the average of the starting and ending balance each year
var estimatedFees = 0;
var currentBalance = initial;
var annualExpenseFactor = expense / 100;
for (var i = 1; i <= years; i++) {
var startOfYear = currentBalance;
// Project balance at end of year before fees
var yearEndBalance = currentBalance * (1 + (returns + dividend)/100) + (monthly * 12);
var avgBalance = (startOfYear + yearEndBalance) / 2;
estimatedFees += avgBalance * annualExpenseFactor;
currentBalance = yearEndBalance – (avgBalance * annualExpenseFactor);
}
// Display Results
document.getElementById('totalBalance').innerHTML = "$" + totalBalance.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalInvested').innerHTML = "$" + totalInvested.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalGain').innerHTML = "$" + totalGain.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('totalFees').innerHTML = "$" + estimatedFees.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('etf-results').style.display = 'block';
}