This tool estimates the future value of your ETF investments based on your inputs.
ETF Estimator Calculator
This ETF Estimator allows you to calculate the future value of your investment based on initial investment, monthly contribution, expected annual return, investment period, and expense ratio.
How to Use
- Enter the initial investment amount.
- Enter your monthly contribution.
- Enter the expected annual return percentage.
- Enter the number of years you plan to invest.
- Enter the ETF’s expense ratio percentage.
- Click “Calculate” to see the estimated future value of your investment.
Calculation Method
The calculator uses the formula for compound interest to estimate the future value of the investment. It compounds the initial investment and each monthly contribution adjusted by the expected annual return and expense ratio. The expected annual return is divided by 12 to get a monthly return rate, and similarly, the expense ratio is divided by 12 to get a monthly expense rate.
Limitations
- Assumes a constant rate of return, which is not realistic as market returns can fluctuate significantly.
- Does not account for taxes on earnings or changes in contributions over time.
- Expense ratios are assumed to be constant, while they may change over time.
Use Cases for This Calculator
Calculate Estimated ETF Returns
Enter the initial investment amount, expected ETF annual return rate, and the number of years to estimate your ETF returns accurately.
Compare Multiple ETF Investments
You can enter details for several ETF investments at once to compare their estimated returns over time and make informed investment decisions quickly.
Adjust for Different Annual ETF Rates
Vary the annual return rate for different ETF investments to see how it impacts your estimated returns over the selected investment period.
Analyze Long-Term ETF Growth
Calculate the potential growth of your ETF investments over 10, 20, or 30 years to gauge the long-term benefits of your investment choices.
Include Initial and Additional Investments
Estimate returns by factoring in both your initial investment amount and subsequent additional investments made over time for a more accurate projection.
See Compound Interest Effect
Understand how compound interest affects your ETF returns by entering the initial investment, annual returns, and the number of years to watch your investment grow exponentially.
Plan for Retirement Savings
Use the ETF estimator to plan for your retirement savings by projecting the growth of your investments over the years until you retire.
Track ETF Performance Over Time
Monitor the performance of your ETF investments over the years by adjusting the annual return rate and investment period to assess the growth trajectory.
Understand Risk vs. Return
Explore different ETF investment scenarios to understand the relationship between risk and return, helping you make investment choices aligned with your risk tolerance.
Share Customized Reports
Generate and share customized reports of your ETF investment estimates with your financial advisor or peers to discuss investment strategies and get valuable insights.