📅 Published 19 October 2026 · Updated 24 October 2026
Short answer: €500 a month into a world ETF at 7% for 30 years grows to roughly €567,000 (TER 0.2%) — of which only €180,000 is your money and about €387,000 is compounding. Enter your own numbers below to see your plan's projected value, the real cost of the TER, and the crossover year when gains overtake contributions.
An ETF savings plan buys a small slice of an exchange-traded fund every month, rain or shine — automatic euro-cost averaging. The calculator compounds your balance monthly at the net return = expected return minus TER, because the fund's annual cost quietly eats into growth every single year:
Future value ≈ monthly payments × [((1 + r)n − 1) / r], where r is the monthly net rate and n is the number of months. Contributions are added at each month's start in the simulation, and any yearly contribution increase is applied at the start of each plan year.
Two numbers deserve your attention more than the headline total. Fee drag is the difference between the value at the full expected return and at the return-minus-TER — it shows, in euros, what the TER costs you over the whole plan. Crossover year is the first year your cumulative gains exceed your cumulative contributions; before it, your own payments dominate, and after it, compounding dominates. With a €500/month plan it typically lands around year 19–20.
Sofia invests €500/month for 30 years at a 7% expected return with a 0.20% TER (a typical all-world UCITS ETF), no contribution increase, 2% inflation:
History backs the logic, if not the exact number: €500 a month into a world equity index across every 30-year window since 1970 ended between roughly €432,000 and €1.65 million after costs, before tax. Wide range — but no window ended near zero, which is why time horizon is the plan's real engine.
Start with what you can sustain for decades — for most European investors that is €100 to €500 a month. The crossover math matters more than the starting amount: €200 a month at 7% for 30 years grows to roughly €245,000. Increase the monthly amount a little every year (2–3%) and the total jumps dramatically because every euro compounds for its full remaining horizon.
Broad world-equity ETFs have delivered around 7–8% per year over long periods after fund costs. Every 30-year window of the MSCI World since 1970 turned €500 a month into somewhere between roughly €432,000 and €1.65 million (a well-known backtest, after costs, before tax). Use 6–7% for conservative planning and 5% if you want a margin of safety. Past returns never guarantee future results.
The TER (total expense ratio) is the ETF's annual cost — for example 0.22% for a typical all-world ETF versus 0.07% for a cheap S&P 500 ETF. On €500 a month for 30 years at 7%, a 2% fee drag instead of 0.2% would cost you well over €150,000 of final value. The calculator's "fee drag" line shows exactly how much your chosen TER takes.
Yes, but the rules differ sharply by country: Germany applies a 25% flat tax (Abgeltungsteuer) on gains plus a small solidarity surcharge, France a 30% flat rate, while some countries exempt long-held gains entirely. Accumulating ETFs defer most taxation until you sell, which is one reason they are popular for long-term plans. This calculator shows pre-tax values — check your country's rules separately.
Accumulating ETFs reinvest dividends automatically, so the full compounding engine runs without you doing anything — ideal for a savings plan you will hold for 15+ years. Distributing ETFs pay the dividends out as cash, which suits investors who want income now. For pure long-term growth, accumulating usually wins on simplicity.
Plan for 15 years or more. The "crossover year" the calculator shows — the year your investment gains first exceed everything you have contributed — typically lands around year 15–20. Before that, you are mostly watching your own contributions grow; after it, compounding does the heavy lifting.
Yes. ETFs track real markets, and markets fall — a world ETF has dropped 30%+ in a single year more than once. The plan works because decades of time let recoveries happen; it does not work if you panic-sell in a crash. Only invest money you will not need for the duration of the plan.
No — starting late still beats not starting, it just changes the numbers. At 45 with 20 years to retirement, €500 a month at 6% grows to roughly €230,000. A higher monthly amount or a longer horizon helps more than chasing a riskier return. Use the calculator with your real age and horizon to see your own picture.