Return on Investment Calculator – Calculate Your Earnings
With the ROI Calculator, you can quickly and easily calculate the earnings of your capital investments. Enter your starting capital, monthly contributions, expected annual return, and the term in years, and the calculator immediately shows your final balance, total deposits, and generated return. This calculator is designed for individuals, investors, and finance enthusiasts who want to better understand and plan their investments. It is particularly useful for setting realistic expectations, reviewing savings strategies, or comparing different investment options. Instead of using complicated formulas, the calculator provides clear results instantly and allows you to transparently track capital growth over time. See exactly how regular contributions and compound interest affect your wealth.
Investment Return Calculator
ROI Investment Calculator: Returns, Fees, Tax & Inflation in One View
This calculator computes the long-term growth of an investment portfolio accounting for starting capital, regular contributions, annual return rate, fund fees (TER), capital gains tax (Abgeltungssteuer), and optional inflation adjustment. It outputs a growth chart and an annual breakdown table, so you can see exactly how fees and taxes compound over time.
Final Portfolio Value
Nominal end value after contributions, returns, fees, and tax. Also shown: real value (inflation-adjusted) so you can see purchasing power, not just nominal figures.
Total Return & Gain
Total gain = final value minus all contributions. Displayed as absolute (€) and percentage return. Compared side-by-side with and without fees/tax to show their impact.
Fee Drag (TER Impact)
Total fees paid over the investment period. Even a 0.5% TER difference compounds significantly: on a 30-year horizon, 0.5% extra TER reduces the final portfolio by 12–15%.
Tax Impact (Abgeltungssteuer)
German capital gains tax: 25% flat rate + 5.5% Solidaritätszuschlag = 26.375% effective. The calculator applies this on realisation (for ETFs: partially via Vorabpauschale annually). Freistellungsauftrag (€1,000/year 2024+) is deducted automatically.
Growth Chart + Annual Table
Line chart showing nominal vs. real portfolio growth year by year. Annual breakdown table: contributions, returns, fees, tax, and end-of-year value for each year of the investment.
Historical Return Benchmarks: What Rate Should You Use?
The assumed annual return rate is the most sensitive input in the calculator. Here are long-run historical averages to use as reference when modelling different asset classes:
| Asset class / Index | Historical return (nominal) | After 2% inflation (real) | Typical TER |
|---|---|---|---|
| MSCI World (since 1970) | ~9.5–10.5% p.a. | ~7.5–8.5% real | 0.10–0.20% (ETF) |
| MSCI All Country World (ACWI) | ~8.5–9.5% p.a. | ~6.5–7.5% real | 0.17–0.22% (ETF) |
| S&P 500 (since 1928) | ~9.8–10.5% p.a. | ~7.5–8.5% real | 0.03–0.07% (ETF) |
| MSCI Emerging Markets | ~7.5–9.0% p.a. | ~5.5–7.0% real | 0.15–0.25% (ETF) |
| Global bonds (aggregate) | ~3.5–5.5% p.a. | ~1.5–3.5% real | 0.10–0.25% (ETF) |
| German government bonds (Bunds) | ~2.5–4.0% p.a. | ~0.5–2.0% real | 0.05–0.15% (ETF) |
| Conservative mixed portfolio (60/40) | ~6.5–8.0% p.a. | ~4.5–6.0% real | 0.10–0.30% (ETF) |
Conservative planning recommendation: Use 6–7% nominal for long-term equity projections to account for potential future return compression, higher starting valuations, and the fact that historical data periods differ. Never plan a retirement with 10% as a guaranteed baseline.
The Real Cost of Fund Fees Over 30 Years
A small annual fee difference has an outsized impact over a long investment horizon. Example: €10,000 starting capital + €200/month contributions at 8% gross return over 30 years:
| TER scenario | Net annual return | Final value | Lost to fees |
|---|---|---|---|
| No fees (theoretical) | 8.0% | ~€316,000 | – |
| Low-cost ETF (TER 0.15%) | 7.85% | ~€306,000 | ~€10,000 (3%) |
| Average ETF (TER 0.40%) | 7.60% | ~€291,000 | ~€25,000 (8%) |
| Active fund (TER 1.50%) | 6.50% | ~€245,000 | ~€71,000 (22%) |
| High-cost fund (TER 2.00%) | 6.00% | ~€224,000 | ~€92,000 (29%) |
The difference between a 0.15% ETF and a 2.00% active fund costs approximately €82,000 over 30 years in this example — more than the entire starting capital invested multiple times over. This is the core argument for low-cost passive investing.
Frequently Asked Questions
How does the German Vorabpauschale (ETF prepayment tax) work?
The Vorabpauschale is an annual minimum tax on accumulating ETFs that have not distributed dividends. It is calculated as: base return rate (Basiszins, set annually by the BMF — in 2024: 2.29%) × fund value at start of year × 0.7 (partial exemption for equity funds). This amount is taxed at the 26.375% Abgeltungssteuer rate each January. For most retail investors with the €1,000 annual Freistellungsauftrag, the Vorabpauschale is fully or partially offset by this allowance. The calculator models this automatically when you select "Accumulating ETF" as the investment type.
Should I use the nominal or real return in my planning?
For planning future purchasing power (e.g., "how much will I have in retirement in today's money?"), always use real returns (nominal return minus expected inflation). For planning nominal wealth (e.g., for tax calculations or comparing with a mortgage), use nominal returns. A common mistake is planning with 8% nominal return and comparing the result to today's prices — this overstates the real outcome significantly. The calculator shows both views side-by-side: nominal final value and inflation-adjusted (real) final value, so you can use whichever is appropriate for your goal.
Does the calculator model the compound interest on monthly contributions correctly?
Yes. Monthly contributions are compounded monthly at the equivalent monthly rate (annual rate ÷ 12 for the simple approximation, or (1 + annual rate)^(1/12) − 1 for compound accuracy — the calculator uses the compound method). The difference between these methods is small but becomes visible over 20–30 years. Note that the annual return rate is applied on the full year's average balance, not just the year-end balance — meaning mid-year contributions earn partial-year returns in the same year they are invested.
What is the Freistellungsauftrag and how does it affect the calculation?
The Freistellungsauftrag is an annual tax allowance for capital gains and investment income in Germany: €1,000 per person (€2,000 for married couples filing jointly) from 2024 onwards (previously €801/€1,602). All capital gains, dividends, and Vorabpauschale payments below this threshold are completely tax-free. The calculator deducts this allowance before applying Abgeltungssteuer each year, meaning small portfolios in early years pay zero tax on investment income. Submit a Freistellungsauftrag to your broker (Depotbank) to ensure the allowance is applied automatically — otherwise tax is withheld and you must reclaim it via your tax return.
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