ETF vs Mutual Fund Cost Calculator
Model how expense ratios, trading costs, and load fees compound over time. Compare final portfolio values and total fees between ETFs and mutual funds with interactive scenarios.
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Quick Scenarios
Investment Assumptions
ETFs receive a 0.25% annual tax-efficiency boost to mimic lower capital-gain distributions.
ETF Costs
Low-cost index tracking assumptionsMutual Fund Costs
Typical actively managed fund assumptions30-Year Cost Snapshot
The ETF pulls ahead of the mutual fund in year 1. Keeping costs low now compounds into $153,916 more wealth at the end of the period.
ETF tax efficiency advantage adds roughly $22,289 in extra value over the full period.
Portfolio Growth Over Time
Cumulative Fees Paid
Detailed Cost Comparison
| Metric | ETF | Mutual Fund |
|---|---|---|
| Final Portfolio Value | $862,883 | $708,967 |
| Total Fees Paid | $7,138 | $58,465 |
| Annual Fees in Final Year | $690 | $5,317 |
| Trading / Load Fees | $0 | $0 |
| Difference vs Mutual Fund | $153,916 more kept by the ETF investor. | |
Even a 0.10% fee gap costs about $100 each year on a $100,000 balance. That friction grows alongside your portfolio and compounds into five-figure differences over multi-decade horizons.
Year-by-Year Outcomes
| Year | ETF Value | Mutual Fund Value | Difference | ETF Fees Paid | Mutual Fund Fees Paid |
|---|---|---|---|---|---|
| 1 | $17,306 | $17,150 | $156 | $14 | $130 |
| 2 | $25,209 | $24,815 | $394 | $34 | $317 |
| 3 | $33,756 | $33,031 | $726 | $61 | $567 |
| 4 | $43,002 | $41,837 | $1,165 | $95 | $883 |
| 5 | $53,002 | $51,276 | $1,726 | $138 | $1,270 |
| 6 | $63,819 | $61,394 | $2,424 | $189 | $1,734 |
| 7 | $75,518 | $72,240 | $3,278 | $249 | $2,280 |
| 8 | $88,173 | $83,866 | $4,307 | $320 | $2,914 |
| 9 | $101,861 | $96,327 | $5,534 | $402 | $3,642 |
| 10 | $116,666 | $109,684 | $6,982 | $495 | $4,471 |
| 11 | $132,679 | $124,002 | $8,678 | $601 | $5,408 |
| 12 | $150,000 | $139,349 | $10,651 | $721 | $6,461 |
| 13 | $168,735 | $155,800 | $12,936 | $856 | $7,638 |
| 14 | $189,000 | $173,433 | $15,567 | $1,008 | $8,949 |
| 15 | $210,918 | $192,334 | $18,584 | $1,177 | $10,402 |
| 16 | $234,626 | $212,594 | $22,032 | $1,365 | $12,009 |
| 17 | $260,269 | $234,311 | $25,958 | $1,573 | $13,779 |
| 18 | $288,006 | $257,590 | $30,416 | $1,803 | $15,726 |
| 19 | $318,007 | $282,542 | $35,465 | $2,058 | $17,861 |
| 20 | $350,457 | $309,288 | $41,169 | $2,339 | $20,198 |
| 21 | $385,556 | $337,957 | $47,599 | $2,647 | $22,752 |
| 22 | $423,520 | $368,688 | $54,832 | $2,986 | $25,538 |
| 23 | $464,584 | $401,628 | $62,956 | $3,358 | $28,573 |
| 24 | $508,999 | $436,936 | $72,063 | $3,766 | $31,875 |
| 25 | $557,041 | $474,783 | $82,257 | $4,212 | $35,462 |
| 26 | $609,004 | $515,352 | $93,652 | $4,700 | $39,357 |
| 27 | $665,209 | $558,837 | $106,372 | $5,232 | $43,580 |
| 28 | $726,003 | $605,449 | $120,554 | $5,813 | $48,155 |
| 29 | $791,759 | $655,412 | $136,347 | $6,447 | $53,108 |
| 30 | $862,883 | $708,967 | $153,916 | $7,138 | $58,465 |
Load fees and higher expense ratios create an early handicap for the mutual fund, and the gap widens every year as compounding magnifies those costs.
Key Financial Terms
Understand the essential concepts behind this calculator
12b-1 Fee
Hidden mutual fund fee (0.25-1% annually) for marketing and distribution. Comes out of your returns. Avoid funds with high 12b-1 fees.
ETF (Exchange-Traded Fund)
A basket of stocks or bonds that trades like a single stock, offering instant diversification with low fees.
Expense Ratio
The annual fee charged by mutual funds and ETFs, expressed as a percentage of your investment.
Index Fund
A type of mutual fund or ETF that tracks a market index, providing broad market exposure with low costs.
Frequently Asked Questions
Common questions about the ETF vs Mutual Fund Cost Calculator
📊 Historical Market Data Sources
• Average annual return (1926-2024): ~10% nominal, ~7% inflation-adjusted
• Standard deviation: ~20% (indicating significant year-to-year volatility)
→ Source: NYU Stern - Historical Returns on Stocks, Bonds and Bills
• S&P 500 average dividend yield: 1.5-2.0% (as of 2024-2025)
• Historical dividend growth rate: ~5.9% annually (1960-2024)
→ Source: S&P Dow Jones Indices
• 10-Year Treasury bonds: ~5% average annual return (1926-2024)
• Corporate bonds (investment grade): ~6% average annual return
→ Source: NYU Stern - Corporate Finance Data
• Long-term average: ~3% annually (1926-2024)
• Recent (2020-2024): 2-8% range with 2022 peak at 8%
→ Source: Bureau of Labor Statistics - Consumer Price Index
Important: Past performance does not guarantee future results. Market returns vary significantly year-to-year. These are long-term historical averages.
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⚠️ Important Disclaimer
This ETF vs Mutual Fund Cost Calculator provides estimates for educational and informational purposes only. Actual results may vary significantly based on individual circumstances, market conditions, regulatory changes, and other factors beyond the scope of this calculator.
The calculations and projections provided are based on assumptions and historical data that may not reflect future performance.Past performance does not guarantee future results.
This tool is not financial advice, tax advice, legal advice, or investment advice. For personalized guidance tailored to your specific situation, please consult with qualified professionals including:
- Certified Financial Planner (CFP)
- Certified Public Accountant (CPA) for tax matters
- Licensed attorney for legal matters
- Registered Investment Advisor (RIA) for investment decisions
Data Accuracy: All data sources, statistics, and rates were verified as accurate as of October 2025. Tax rates, market conditions, and other financial data change over time. Always verify current rates and consult official sources.
No Warranties: While we strive for accuracy, we make no warranties or guarantees regarding the accuracy, completeness, or reliability of any information provided. Use this tool at your own risk.