ETF Calculator

What is an ETF Calculator?

An ETF (Exchange-Traded Fund) Calculator helps investors estimate how much their investment in an ETF might grow over a certain period, based on a fixed annual return rate. It’s perfect for understanding potential long-term gains from passive investing.

This calculator uses the compound interest formula to calculate:

• Invested Amount
• Estimated Return
• Total Value After Investment Period

Formulas Used

1. Total Value After Investment Period

The calculator assumes compounded annual growth:

$\text{Total Value}=P\times {\left(1+\frac{r}{100}\right)}^t$

Where:

• $P$ = Total Investment
• $r$ = Expected Return Rate (% per annum)
• $t$​​​​​​​ = Time Period (in years)

2. Estimated Return

$\text{Estimated Return}=\text{Total Value}-\text{Total Investment}$

3. Invested Amount

This is just the input value $P$​​​​​​​ (Total Investment), displayed for clarity.

Example Calculation

Let’s say you:

• Invest $10,000
• For 5 years
• At an expected return of 8% per annum

Step 1: Total Value

$\text{Total Value}=10000\times {\left(1+\frac{8}{100}\right)}^5=10000\times \left(1.4693\right)=14693$

Step 2: Estimated Return

$\text{Estimated Return}=14693-10000=4693$

Final Output:

• Invested Amount: $10,000
• Estimated Return: $4,693
• Total Value: $14,693

Conclusion

Our ETF Calculator is a simple tool for estimating your investment growth over time. Whether you're planning for retirement or building wealth passively, understanding compound growth can help you make informed financial decisions.