The Finance Algorithm

ETF Returns Calculator

Calculate expected returns from ETF investments including dividends, capital growth, and the impact of management fees.

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$20k

Your starting lump sum investment

$
$500

Drip-feed via dollar cost averaging

For your reference; set the return and yield you expect below

%

An assumption for the fund's total return including dividends. Check its published past returns, but they don't guarantee future ones.

%

From the fund's published distribution history

%
0.2%

The yearly management fee from the fund's product disclosure statement

15y

How long you plan to hold the investment

Reinvesting compounds; 30-50% of long-term return comes from this

The button asks our AI to explain these figures in words.

Your ETF projection

Final balance

$203,784

Investment growth

$93,784

$110,000 put in

Effective return

6.80%

7% less the fee

Fees paid

$3,103

$3,315 more than at a 0.05% fee

Year-by-year balance

Curve includes contributions + growth + (where relevant) reinvested dividends, minus fees.

$0k$51k$102k$153k$204kYr 1Yr 4Yr 7Yr 9Yr 12Yr 15

Where the final balance comes from

Contributions are your money in. Growth + dividends are what compounding adds on top.

$203,784final balance
Contributions54.0%
Investment growth46.0%

Same plan at different returns

Your assumption and 2 points either side. Returns vary from year to year and past returns don't guarantee future ones.

  • Your assumption
  • Higher or lower
5% a year$169k6% a year$186k7% a year$204k8% a year$224k9% a year$246k
$3,315 lost to fees against the same plan at a 0.05% management fee. Fees come out of the balance every year, so a small difference in the fee compounds into a large one by the end.

How it works

An exchange-traded fund (ETF) holds a basket of investments and trades on the ASX like a share. This calculator projects an ETF portfolio from your lump sum, monthly contributions and the fund's management fee, using the return and dividend yield you expect, and shows how much the fee costs you over time and how the result changes if returns are higher or lower.

  1. 1Enter your initial investment and monthly contribution.
  2. 2Choose the type of ETF and enter the return and dividend yield you expect.
  3. 3Enter the fund's management fee from its product disclosure statement.
  4. 4Set your timeframe and whether dividends are reinvested.
  5. 5See the projected balance, the fees paid and the result at other returns.

Worked examples

Long-Term Growth

Sarah invests $30,000 and adds $600 a month for 20 years in a fund charging 0.18%, assuming a 9% return with a 2% yield, dividends reinvested.

Initial investment
$30,000
Monthly contribution
$600
ETF type
Global Shares (International)
Management fee (MER %)
0.18%
Investment period (years)
20
Reinvest dividends?
Yes - reinvest all dividends
Expected return before fees (% a year)
9%
Dividend yield (% a year)
2%

At 9% a year less the fee, the portfolio could reach about $525,000 from $174,000 of contributions - $351,000 of growth. Fees total about $8,100, and the same plan at a 0.05% fee would end about $10,600 higher.

Fee Impact

$50,000 plus $500 a month for 25 years at an 8% return, in a fund charging 0.70%.

Initial investment
$50,000
Monthly contribution
$500
ETF type
Diversified (Growth)
Management fee (MER %)
0.7%
Investment period (years)
25
Reinvest dividends?
Yes - reinvest all dividends
Expected return before fees (% a year)
8%
Dividend yield (% a year)
3%

The plan reaches about $683,000 from $200,000 of contributions. At a 0.05% fee it would reach about $780,000 - the 0.70% fee costs about $96,000 over 25 years.

Questions people ask

What's the difference between an ETF and a managed fund?
An ETF is bought and sold on the stock exchange during trading hours; an unlisted managed fund is bought from the fund manager. Both pool investors' money, and fees and strategies vary within each. Compare the fee, what the fund invests in and how it's run in each product disclosure statement.
How are ETF returns taxed?
Distributions - dividends, interest and realised gains passed on by the fund - are taxable each year at your marginal rate, and Australian share funds may pass on franking credits. When you sell units at a profit, capital gains tax applies, with a 50% discount for individuals on units held over 12 months.

The terms, in plain English

ETF (Exchange-Traded Fund)
An investment fund that trades on a stock exchange, typically tracking an index. Offers instant diversification at low cost.
MER (Management Expense Ratio)
The annual fee charged by the ETF provider as a percentage of your investment. Lower MER = more of your returns stay in your pocket.
Dollar Cost Averaging
Investing a fixed amount at regular intervals regardless of market price. This reduces the risk of investing a large lump sum at the wrong time.
Franking Credits
Tax credits attached to dividends from Australian companies that have already paid company tax. They reduce the tax you pay on dividends.

Official sources

Compound Interest Calculator

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