Enter Your ETF Cost Assumptions
Example Data Table
| Input Field | Example Value |
|---|---|
| Initial Investment | $20,000 |
| Monthly Contribution | $400 |
| Holding Period | 12 years |
| Expected Annual Return | 8.50% |
| Expense Ratio | 0.18% |
| Annual Account Fee | $18 |
| Commission per Trade | $1.25 |
| Purchases per Year | 12 |
| Bid Ask Spread | 0.04% |
| Annual Tax Drag | 0.25% |
| One Time Setup Fee | $12 |
| Exit Fee | 0.10% |
Use this sample set to test the calculator, compare scenarios, and understand how small recurring costs reduce compounding over time.
Formula Used
Annual contribution: Monthly Contribution × 12
Trading cost: (Commission per Trade × Trade Count) + (New Money × Bid Ask Spread) + One Time Fee
Net capital before growth: Opening Value + New Money − Trading Cost
Gross return: Net Capital Before Growth × Expected Annual Return
Average assets: Net Capital Before Growth + (Gross Return ÷ 2)
Expense ratio cost: Average Assets × Expense Ratio
Tax drag: Average Assets × Tax Drag
Ending value: Net Capital Before Growth + Gross Return − Expense Ratio Cost − Tax Drag − Annual Account Fee − Exit Fee
The gross comparison path assumes the same contributions and return but removes all modeled fees, spreads, taxes, and exit costs.
How to Use This Calculator
- Enter your initial ETF purchase amount.
- Add your planned monthly contribution.
- Choose the number of years you expect to hold.
- Estimate annual return, expense ratio, and tax drag.
- Include commissions, spreads, account fees, and exit costs.
- Press the calculate button to view results above the form.
- Review the graph and yearly table for cost buildup.
- Export your results with the CSV or PDF buttons.
Frequently Asked Questions
1. What does this ETF cost calculator estimate?
It estimates how fees, trading costs, tax drag, and exit charges can reduce long term ETF growth. It also compares a gross no-cost path against a fee-adjusted path.
2. Why include bid ask spread?
The bid ask spread is a real trading friction. Even when commissions are low, repeated buying can create hidden costs that reduce the amount actually invested.
3. What is tax drag in this model?
Tax drag represents annual performance lost to taxes on distributions or rebalancing effects. It is simplified here as a yearly percentage reduction on average assets.
4. Does this replace fund prospectus data?
No. This tool is a planning estimate. Always verify actual expense ratios, trading terms, tax treatment, and any platform charges from official fund documents.
5. Why compare gross and net ending values?
That comparison shows how much wealth disappears because of costs. It helps you judge whether a cheaper ETF or different trading plan could improve outcomes.
6. Can I model recurring investing strategies?
Yes. Monthly contributions and purchases per year let you test frequent investing, lower frequency investing, or a mix of lump sum and recurring purchases.
7. Why is the annual account fee separate?
Some brokers or platforms charge flat yearly fees. Separating them from the expense ratio shows the difference between fund level costs and account level costs.
8. Can I use this for comparing two ETFs?
Yes. Run the calculator once for each ETF using its own expense ratio, spread, and fee assumptions. Then compare net ending value and total lifetime cost.