Calculation sequence
Every selected cost has a place in the model.
The calculator compares two funding paths. For a lump sum, it adds one annual contribution and compounds once each year. For dollar-cost averaging (DCA), it converts the monthly contribution into a quarterly contribution, adds it four times per year, and compounds after each quarterly deposit. In both cases, the initial investment is added in year one before the regular deposits.
Each deposit first has the selected conversion fee deducted. It then deducts the larger of the fixed broker fee and the percentage broker fee. The remaining net deposit enters the portfolio. At the end of each year, the selected total expense ratio (TER) is deducted from the portfolio value.
For distributing ETFs, the model adds dividends for each compounding period and deducts the selected dividend-tax rate before reinvesting the remainder. At the final year only, it calculates capital-gains tax on a positive gross profit and applies the configured municipality surtax multiplier. Finally, it applies the chosen EUR/USD stress adjustment and converts the stressed nominal figure to an inflation-adjusted value.
Accumulating and distributing ETFs use different return inputs in the calculator. This is accounting within a simplified scenario, not a statement about a fund’s future distributions, tax treatment, or market return.
Worked example
Trace one illustrative scenario.
€5,000 initially, then €300 monthly for 20 years
Open a scenario with a 4% annual market-growth assumption, 3% inflation, 0.40% TER, and the costs and taxes you select: open it in ETF Compass.
With DCA selected, each €300 monthly input becomes a €900 quarterly gross deposit. Before each deposit enters the portfolio, the model subtracts conversion cost plus the larger of the fixed and variable broker fee. It grows the resulting balance quarterly, subtracts TER at each year end, calculates final-year capital-gains tax on positive profit, then applies stress and inflation. The displayed figure therefore is not simply €5,000 + (€300 × 12 × 20) grown at 4%.
Change one assumption at a time and inspect total principal, fees, taxes, nominal value, and real value. That makes the direction of an assumption visible without pretending the output is precise.
Model boundaries
Useful for sensitivity, unsuitable for prediction.
The model includes the initial investment, regular contributions, conversion and broker fees, TER, selected dividend and capital-gains taxes, a currency-stress input, and inflation adjustment. It does not know future returns, price paths, actual fund tracking, bid–ask spreads, platform fees not entered by the user, tax residency, legal changes, withdrawals, emergency needs, or your personal risk capacity.
Use cautious, central, and adverse assumptions. A result can help you ask better questions about a saving plan, but it is general education—not personalized advice to buy, sell, hold, or allocate to any investment.
Sources reviewed 18 August 2026
Primary references
No personalized advice
This article is general education. Check current official information and seek regulated professional advice where appropriate for your circumstances.
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Returns and inflation · Fees, taxes, and currency · About ETF Compass