Two one-off amounts left alone for 30 years in a global index fund with 0.14% ongoing costs and a 6% a year return before costs. Real returns go up and down and can be negative; the 6% is a calculation example, not a forecast.
The two examples side by side
| One-off | Total deposited | Net balance | Fee erosion | Fees as % of gain |
|---|---|---|---|---|
| €10,000 | €10,000 | €57,760 | €2,465 | 4.91% |
| €25,000 | €25,000 | €144,401 | €6,163 | 4.91% |
€10,000 once, 30 years
A sum many people might have saved or received once.
| Assumptions | Value |
|---|---|
| Starting amount | €10,000 |
| Monthly contribution | €0 |
| Horizon | 30 years |
| Return before costs | 6% a year |
| Fund costs (TER) | 0.14% a year |
| Result after 30 years | Amount |
|---|---|
| Total deposited | €10,000 |
| Gross balance | €60,226 |
| Net balance | €57,760 |
| Fee erosion | €2,465 |
| Net gain | €47,760 |
| Fees as % of gain | 4.91% |
| Year | Deposited | Balance after costs | Growth |
|---|---|---|---|
| 5 | €10,000 | €13,395 | €3,395 |
| 10 | €10,000 | €17,942 | €7,942 |
| 15 | €10,000 | €24,033 | €14,033 |
| 20 | €10,000 | €32,192 | €22,192 |
| 25 | €10,000 | €43,121 | €33,121 |
| 30 | €10,000 | €57,760 | €47,760 |
If you wait five years and leave the same sum for 25 years, the balance after costs is €43,121 instead of €57,760: €14,639 less, with not a euro more or less deposited. Only the time is shorter.
€25,000 once, 30 years
More than twice as much: the result scales in a straight line, because nothing is added later.
| Assumptions | Value |
|---|---|
| Starting amount | €25,000 |
| Monthly contribution | €0 |
| Horizon | 30 years |
| Return before costs | 6% a year |
| Fund costs (TER) | 0.14% a year |
| Result after 30 years | Amount |
|---|---|
| Total deposited | €25,000 |
| Gross balance | €150,564 |
| Net balance | €144,401 |
| Fee erosion | €6,163 |
| Net gain | €119,401 |
| Fees as % of gain | 4.91% |
| Year | Deposited | Balance after costs | Growth |
|---|---|---|---|
| 5 | €25,000 | €33,487 | €8,487 |
| 10 | €25,000 | €44,856 | €19,856 |
| 15 | €25,000 | €60,084 | €35,084 |
| 20 | €25,000 | €80,481 | €55,481 |
| 25 | €25,000 | €107,803 | €82,803 |
| 30 | €25,000 | €144,401 | €119,401 |
If you wait five years and leave the same sum for 25 years, the balance after costs is €107,803 instead of €144,401: €36,598 less, with not a euro more or less deposited. Only the time is shorter.
One amount or a little every month
| Plan | Total deposited | Net balance | Net gain |
|---|---|---|---|
| €25,000 once | €25,000 | €144,401 | €119,401 |
| €250 a month | €90,000 | €244,508 | €154,508 |
The monthly plan deposits €90,000 over 30 years against €25,000 once, so it ends higher: €244,508 against €144,401. Per euro put in the picture reverses: the one-off sum grew to €5.78 per euro and the monthly plan to €2.72, because every euro of the one-off sum had all 30 years to grow while the monthly deposits had about half of that on average.
What the horizon does at €10,000
| Horizon | Net balance | Net gain | Fee erosion |
|---|---|---|---|
| 10 years | €17,942 | €7,942 | €252 |
| 20 years | €32,192 | €22,192 | €910 |
| 30 years | €57,760 | €47,760 | €2,465 |
| 40 years | €103,635 | €93,635 | €5,939 |
After 20 years €10,000 has become €32,192 and after 40 years €103,635. The second twenty years add €71,443 against €22,192 in the first twenty, with nothing added along the way.
Investing involves risk of loss. The figures presented by this calculator are for illustrative purposes only and do not constitute financial advice. Past performance does not guarantee future results.
Questions about these examples
Why is the final balance so much larger than the sum I put in?
Each month the return is added to a balance that already holds earlier returns. Of the €57,760 after 30 years, €47,760 is growth and €10,000 is your own money.
Are taxes included?
No. Tax, such as Dutch Box 3, depends on your situation and is not part of the calculation. Neither are transaction costs or dividend withholding tax.
Terms on this page
Source of the figures: the ETF calculator's own calculation engine, under the assumptions in the text. How the calculator works