ETF savings plan calculator
Calculate how much your monthly ETF investment could grow. See the impact of fees, returns, and time on your portfolio.
Portfolio value
€101,692
Total invested
€48,000
Total growth
€53,692
Fees paid
€2,494
Portfolio growth over 20 years
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This calculator provides estimates for educational purposes only. Actual returns may vary. Past performance is not indicative of future results.
How compound interest builds wealth
The most powerful force in investing is compound interest. When your investment earns returns, those returns themselves start earning returns. Over time, this snowball effect means your money grows exponentially rather than linearly.
For example, investing just €200 per month at a 7% annual return over 20 years gives you about €104,000 in total value, even though you only contributed €48,000. The remaining €56,000 is pure investment growth. After 30 years, the numbers become even more dramatic.
Why fees matter more than you think
A seemingly small difference in annual fees compounds dramatically over time. On a €200/month investment over 30 years, the difference between a 0.20% TER and a 1.50% TER is roughly €40,000 in lost returns. Always check the TER before choosing an ETF.
Why starting early matters
Time is the biggest factor in compound growth. Someone who invests €200/month from age 25 to 65 will have significantly more than someone who invests €400/month from age 35 to 65, even though the second person contributes more money in total. The extra 10 years of compounding make all the difference.
What this calculator does not account for
This calculator uses a fixed annual return for simplicity. In reality, market returns vary significantly year to year. It also does not account for inflation, taxes on capital gains, or transaction fees charged by your broker. Use it as a directional guide, not a precise prediction.
Common questions
What is a good expected return for ETFs?
Historically, globally diversified stock ETFs (like those tracking the MSCI World) have returned around 7-8% annually before inflation over long periods. However, past performance does not guarantee future results. Conservative estimates often use 5-7%.
What is TER and why does it matter?
TER (Total Expense Ratio) is the annual fee charged by an ETF fund. It is deducted from your returns automatically. Even small differences in TER compound significantly over decades. A 0.2% TER vs 1.5% TER on a 20-year investment can mean tens of thousands of euros in difference.
How much should I invest monthly in ETFs?
There is no universal answer. Financial planners often suggest investing 10-20% of your net income. The most important factor is consistency. Even small monthly amounts grow substantially over long periods thanks to compound interest.
Are ETF investments safe?
ETFs are regulated financial products and your holdings are protected (separated from the fund provider). However, the value of ETF investments fluctuates with the market. You can lose money, especially over short periods. ETFs are generally considered suitable for long-term investing (5+ years).