Calculate the return on your Exchange Traded Fund (ETF) investment based on initial investment, periodic contributions, and final value.
Learn how to use the Return on Exchange Traded Fund Calculator calculator and its working principles
The calculator uses the following formula to calculate the total value of your ETF investment:
Total Value = Initial Investment × (1 + Annual Return Rate)^Years + Monthly Contribution × [(1 + Annual Return Rate)^Years - 1]/Annual Return Rate
This formula accounts for both the initial investment and any periodic contributions, compounding the returns over the specified investment period.
For example, if you invest $10,000 initially, contribute $500 each month for 10 years, and expect an annual return rate of 7%, the calculator will show the total investment amount, total return, and total value of your ETF investment after 10 years.