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ETF vs index fund calculator

ETF vs index fund calculator

The ETF wins by €2,263.70 in the end.

Final value with ETF€61,735.13
Final value with fund€59,471.43

Compares the long-term effect of the TER (annual fee) and ETF purchase fees. Note: in some countries switching between index funds can defer tax on the gains, an advantage this figure doesn't reflect. Estimate only, not financial advice.

This ETF vs index fund calculator compares the long-term cost and final value of both options, based on their annual fees (TER) and any ETF purchase costs.

Small fee differences add up

A lower TER means more of your return compounds over time instead of being eaten by fees. Enter your investment amount, expected annual return, time horizon, the TER of each option and any ETF purchase fees to see which one wins — and by how much — at the end of the period.

Tax treatment isn’t included here, since it depends heavily on where you invest: in some countries, switching between index funds can defer taxes on gains in a way that switching ETFs cannot, which is worth factoring in separately.

FAQ

What is TER and why does it matter?
TER (Total Expense Ratio) is the annual fee charged by a fund or ETF as a percentage of your invested amount. Even a small difference in TER compounds significantly over long periods.
Why would I pick a fund over an ETF if the ETF has a lower TER?
ETFs are usually bought through a broker and can carry purchase fees or a bid-ask spread that funds don't have. Some investors also value the ability to set up automatic recurring investments more easily with funds.
Does this include taxes?
No — this calculator only compares fees and purchase costs. Tax treatment of ETFs and index funds varies by country and can meaningfully change which option comes out ahead.