ETF Cost Comparison Calculator

ETF cost comparison calculator for expense ratios, fees, and real ending value

When two ETFs track a similar index, the deciding factor is often cost. The catch is that cost is not only the headline expense ratio. Your broker platform can add an ongoing fee, and trading frictions like commission and bid-ask spread can quietly chip away at returns. This ETF cost comparison calculator is built for one core decision: choosing between two ETFs for a long-term holding period based on which one is likely to leave you with more money.

The calculator estimates each ETF’s ending value after fees, then shows the total cost paid along the way. You enter an initial investment, a holding period, and an expected annual return before fees. Then you enter ETF A and ETF B expense ratios. That is enough for a useful comparison in most real searches, because expense ratios compound against you every year. If you want a more realistic picture, open the Advanced section to include optional platform fees and trading costs.

The results are designed to be decision-friendly. You will see which ETF is cheaper, by how much, and what that cost difference means in currency terms over your chosen time horizon. You also get a small breakdown so you can tell whether the gap is coming from annual fund fees, platform fees, or trading frictions. This keeps the page locked to the real-world intent: comparing two ETFs, not forecasting markets or building a full portfolio plan.

Assumptions and how to use this calculator

• The “expected annual return before fees” is a simple average return assumption. It is not a guarantee and will vary in real markets.
• Annual fees (expense ratio plus optional platform fee) are modeled as a percentage drag on growth each year, which is a practical approximation for long-term comparisons.
• Trading costs are simplified into optional commission and bid-ask spread costs applied to buys and the final sell, rather than tracking exact intraday prices.
• If you add annual contributions, the calculator assumes contributions are spread across the year through a fixed number of buys per year (default 1).
• This tool compares costs only. It assumes both ETFs have similar exposure and does not adjust for tracking difference, liquidity differences beyond spread, or tax treatment differences.

Common questions

Is the expense ratio the only ETF cost that matters?

No. Expense ratio is the most reliable long-run cost because it applies every year, but platform fees, commissions, and bid-ask spread can matter, especially for smaller balances or frequent buying. If you trade often or your platform charges a custody fee, use the Advanced inputs to avoid a misleading comparison.

What should I enter for “expected annual return before fees”?

Use a conservative long-term assumption that matches your ETF’s broad market exposure. Many people use something in the mid single digits to high single digits for equity-heavy ETFs, but the point here is not perfect forecasting. Because both ETFs use the same return assumption, the comparison remains useful even if the return is not exact.

How does the calculator treat platform or custody fees?

Platform fees are treated as an additional annual percentage drag, similar to an expense ratio. If your platform fee is charged as a fixed monthly amount instead of a percentage, this calculator will not model that accurately. In that case, you can approximate by converting your annual platform cost into a percentage of your expected average balance.

What is the bid-ask spread input and when should I use it?

Bid-ask spread is the difference between the best available buy price and sell price. It is a cost you effectively pay when you trade. If your ETF is liquid and spreads are tiny, you can leave it at 0. If the ETF is thinly traded or you are buying and selling larger amounts, adding a small spread can make the comparison more realistic.

Why can the “cheaper” ETF still end up close to the other one?

If the expense ratios are close and your holding period is short, the difference may be small. Trading costs can also dominate for small balances. The calculator’s breakdown helps you spot this quickly. In long holding periods with meaningful balances, small fee differences can become large currency differences because they compound.