ETF Cost Calculator: The Real Cost of Owning an ETF
A fund's headline charge is only the start. This free calculator adds the three costs an ETF investor actually pays — the fund's ongoing charge (TER), your platform or custody fee, and per-trade dealing charges — and projects them over your holding period. See the total cost split by type, your final pot with and without costs, and the effective total cost ratio. Projections are illustrative only, not advice.
Reviewed by Yaniv Barshaf · Fees verified June 2026 · Our methodology
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ETF cost calculator
The headline fund charge is only part of what an ETF portfolio costs. This tool adds the fund's ongoing charge (TER), your platform/custody fee and any dealing charges, then shows the total cost over your holding period and the pot you keep with and without it.
Final value (after costs)
£46,051
If costs were 0%
£47,527
Total you paid in
£34,000
Total cost over 10 years
£1,207
That is an effective total cost ratio of 3.55% of the money you invested. Including the growth those costs would have earned, they reduce your final pot by £1,476.
Illustrative projection only — not financial advice. Returns are assumed to be constant and are not guaranteed; real markets rise and fall, and you may get back less than you invest. Figures assume monthly compounding, that percentage fees are charged on your balance each month, and that dealing charges are spread evenly across the year. The tool does not model inflation, tax, bid-offer spreads or FX conversion fees. Capital at risk. This is not financial advice. Investing involves risk of loss.
How the ETF cost calculation works
Enter your initial investment, monthly contribution, holding period and an expected annual return, then the three cost inputs: the fund's TER (its ongoing charge, often 0.05%–0.30% for a mainstream index ETF), your platform or custody fee (a percentage some brokers charge each year to hold the ETF), and any dealing charge per trade multiplied by how many trades you make a year. The calculator compounds your balance monthly, applying one twelfth of the TER and platform fee to the balance each month and spreading dealing charges evenly across the year. It runs the projection twice — once with your costs and once at zero — so you can see the cost drag in cash. The result splits total cost into fund charges, platform fees and dealing charges, and expresses the whole lot as an effective total cost ratio: the total you paid in costs as a percentage of the money you invested. It does not model bid-offer spreads, FX conversion on overseas ETFs, inflation or tax.
Why the TER is only part of the story
Investors often pick an ETF on its TER alone and stop there, but the platform holding it can cost more than the fund itself. A 0.07% global index ETF looks almost free, yet a 0.45% platform fee on top makes your true annual cost roughly 0.52% — more than seven times the fund charge. Percentage platform fees hurt larger portfolios most, which is why some investors switch to flat-fee platforms above a certain pot size; dealing charges, by contrast, punish frequent buyers of the same fund. The calculator lets you test all three levers together: drop the platform fee and watch the final pot rise, or add a £10 dealing charge across twelve monthly purchases and see it erode returns. Once you know your target platform, run its real fees here, then use the investment return calculator to see the longer-term compounding effect and the FX fee calculator for the currency cost of overseas ETFs.
Frequently Asked Questions
What costs does the ETF cost calculator include?
Three recurring costs: the fund's ongoing charge (TER), the platform or custody fee your broker charges to hold the ETF, and any per-trade dealing charge multiplied by your trades per year. It shows each as a separate line and combines them into a total cost and an effective total cost ratio.
What is a TER or ongoing charge?
The Total Expense Ratio, now usually called the ongoing charges figure (OCF), is the annual cost of running the fund itself, deducted from the fund's value automatically. Mainstream index ETFs commonly charge 0.05% to 0.30% a year. It is separate from — and on top of — any fee your platform charges to hold the ETF.
Is the ETF cost calculator broker-specific?
No. It is broker-agnostic: you enter the TER, platform fee and dealing charge yourself, so it works for any fund and any platform. For broker-by-broker fee comparisons, use the trading cost calculator and FX fee calculator, which are built from verified broker fee data.
What is an effective total cost ratio?
It is the total of all costs you paid over the period, expressed as a percentage of the money you invested. It rolls the fund charge, platform fee and dealing charges into a single figure so you can compare very different cost structures on a like-for-like basis. It is a simplified measure for illustration, not an official regulated metric.
Does it account for tax or currency conversion?
No. The projection is in nominal pounds before inflation and before any tax, and it does not model the FX conversion fee on ETFs priced in another currency or the bid-offer spread. Use the FX fee calculator for currency costs, and remember a Stocks and Shares ISA can shelter gains and dividends from tax. Not financial advice.