Index Fund Return Calculator

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Index funds are the most accessible path to market returns for the average investor. This calculator projects the future value of your regular monthly contributions while accounting for the drag of annual expense ratios — showing exactly how fees impact your long-term wealth accumulation.

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Enter Your Measurements

Results

Projected Portfolio Value

1,106,416.09

$

Total Contributed

180,000.00

$

Investment Growth

926,416.09

$

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Formula

Net Return = Annual Return − Expense Ratio FV = PMT × [(1 + r)^n − 1] / r (where r = net monthly rate, n = months)

How to Use This Calculator

How to Use

  1. 1

    Enter your planned monthly investment amount.

  2. 2

    Set the number of years you plan to invest.

  3. 3

    Enter your expected annual return (S&P 500 historical average is ~10% nominal).

  4. 4

    Enter the fund's expense ratio (Vanguard/Fidelity index funds are typically 0.03–0.20%).

Frequently Asked Questions

Frequently Asked Questions

How much does a 0.5% higher expense ratio cost long term?

On $500/month invested for 30 years at 10% gross return, a 0.1% expense ratio vs. 0.6% costs approximately $150,000–$200,000 in reduced final portfolio value. Minimizing fees is one of the highest-leverage financial decisions.

Is a 10% annual return realistic for index funds?

The S&P 500 has averaged roughly 10% nominal (before inflation) annually over the long term. After inflation (~3%), the real return is approximately 7%. Use 7% for inflation-adjusted projections.
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About This Calculator

This calculator uses the formula: Net Return = Annual Return − Expense Ratio FV = PMT × [(1 + r)^n − 1] / r (where r = net monthly rate, n = months). All calculations follow industry-standard methods. Results are estimates — always verify with a licensed professional for structural or code-compliant work.

Built and maintained by the CalcSmart team. Last updated March 2026.

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