ETF Return Calculator
Project what an ETF position could grow to — and see the hidden cost of fees. Add a lump sum and regular contributions, set an expected return and the fund's expense ratio, and watch the fee drag add up.
▸ Show year-by-year breakdown
| Period | Invested | Growth | Value |
|---|
Estimates are for illustration and education only — not financial advice. Returns are assumed constant and are not guaranteed; real markets fluctuate.
Why the expense ratio matters so much
An ETF's expense ratio is the percentage of your balance the fund charges every year — quietly, whether it goes up or down. A 0.15% ratio sounds trivial next to a 7% return, but because it's skimmed off your entire balance every year for decades, the lost growth compounds into a surprisingly large number.
Fees compound against you
Each dollar taken in fees is a dollar that never compounds again. Over a long horizon the gap between a low-cost index ETF and a pricier fund can amount to tens of thousands of dollars — often more than any performance difference between them. This is why cost is one of the few reliable predictors of long-run fund returns.
Return is an assumption, not a promise
The return you enter is a steady average; real ETF returns swing year to year. Use a conservative figure, and remember that the "Lifetime fees" number here is the growth you forfeit to costs, not just the raw fees paid.
Compare a few funds' expense ratios side by side, then send the winner to our compound interest calculator to explore other scenarios.
How ETF returns are calculated
Your balance compounds on itself each period while your contributions add fresh fuel — but the expense ratio skims a slice off the top every year, which is why net return, not gross, is what actually reaches you.
What drives your ETF outcome
Four inputs decide almost everything. Get realistic about each and the projection becomes a genuinely useful planning number.
Helps you lifts returns
- A longer time horizon — compounding does its best work in the final years
- Higher, consistent contributions that buy through every market
- Low expense ratios — broad index ETFs often charge under 0.10%
- Reinvesting distributions instead of taking them as cash
Hurts you drags returns
- High expense ratios compounding against you every year
- Trading in and out, triggering costs and taxes
- Pausing contributions during downturns — the worst time to stop
- Over-optimistic return assumptions that hide the real risk
Expense ratio in plain numbers. A 0.20% ratio means $2 a year per $1,000 invested. It's deducted quietly inside the fund's price, so you never see a bill — which is exactly why it's easy to ignore and so worth checking before you buy.
Total return vs price return. Use a total-return figure that assumes dividends are reinvested; a broad-market ETF's dividends are a meaningful part of its long-run growth, and leaving them out understates where you'll end up.
What different expense ratios cost over 20 years
The lifetime cost of fees on a $100,000 portfolio growing at 7%, by expense ratio. Same market, same returns — only the fee changes.
| Expense ratio | Annual cost (yr 1) | Est. 20-yr fee drag | Typical fund type |
|---|---|---|---|
| 0.03% | $30 | ~$1,600 | Broad index ETF |
| 0.20% | $200 | ~$10,500 | Sector / smart-beta ETF |
| 0.50% | $500 | ~$25,000 | Active ETF |
| 1.00% | $1,000 | ~$48,000 | Pricey active fund |
Illustrative figures for a $100,000 lump sum at 7% gross return, rounded. Fee drag is the growth you forfeit, not just the raw fees paid — because every dollar in fees also loses all the compounding it would have earned.