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Mutual Fund / ETF Return Calculator

Project fund growth with monthly contributions — after the expense ratio quietly eats into your return.

Inputs

Initial investment

Monthly contribution

Gross annual return

Expense ratio0.03% index ETF · 0.75% typical active fund

Years

Value in 25 years

$482,366.60

Net return: 7.25%

Total contributed

$160,000.00

Gains after fees

$322,366.60

Lost to fees

$66,548.36

vs. same fund with 0% ER

Balance growth

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Net return = gross return − expense ratio. Then FV = PV·(1+i)^N + PMT·((1+i)^N − 1)/i with i = net/12 and N = years × 12.

Why do expense ratios matter so much?

They compound. A 1% ER on 30 years of $500/mo contributions can cost $100,000+ vs. a 0.03% index fund with the same gross return.

What's a low expense ratio?

Broad-market index ETFs (VOO, VTI): 0.03–0.05%. Target-date funds: 0.10–0.75%. Actively managed: 0.75–1.25%. Anything above 1% is expensive.

Does the ER include trading costs?

No — the ER is management + admin fees. Turnover-related trading costs and bid-ask spreads are separate.

Does this account for taxes?

No — inside a 401(k)/IRA, growth is tax-deferred. In taxable accounts, factor in annual distributions.

How is contribution timing modeled?

End of month (ordinary annuity).