ETF Switch Calculator

When is switching to a cheaper ETF worthwhile? Including switching costs, taxes and break-even time.

Assumptions

€
€
Only relevant if gains are taxed when selling.
%
TER or – more meaningful – the actual tracking difference over several years.
%
%
years
€

Switching costs

€
%
Half is paid on the sale, half on the purchase.
%
Your effective tax rate on capital gains. Allowances and partial exemptions may reduce it. Not tax advice – 0 means taxes are ignored.

Result

Cost difference
40 basis points (0.40% p.a.)
Cost saving in the first year (approx.)
€200
Cost difference × current value – not a break-even time
One-off switching costs
€60
of which taxes €0, fees and spread €60
Break-even time
0 years and 4 months
From then on the new ETF is ahead after costs and taxes (if sold).
Difference after 20 years (after tax if sold)
€14,396
Both lines show the value after tax if sold in that year. The crossing point is the break-even time.
Annual overview (table)
Year Keep current ETF Switch to new ETF Difference
0 €50,000 €49,940 -€60
1 €53,232 €53,382 €150
2 €56,674 €57,062 €388
3 €60,338 €60,995 €657
4 €64,239 €65,200 €961
5 €68,392 €69,694 €1,302
6 €72,813 €74,498 €1,685
7 €77,521 €79,633 €2,112
8 €82,532 €85,122 €2,590
9 €87,868 €90,990 €3,121
10 €93,549 €97,262 €3,713
11 €99,597 €103,966 €4,369
12 €106,036 €111,132 €5,096
13 €112,891 €118,793 €5,902
14 €120,189 €126,981 €6,792
15 €127,960 €135,734 €7,774
16 €136,232 €145,090 €8,858
17 €145,040 €155,091 €10,051
18 €154,416 €165,781 €11,365
19 €164,399 €177,209 €12,809
20 €175,028 €189,424 €14,396

Assumptions used

  • Values if sold are compared: both scenarios assume a sale and taxation of the gain on the respective date. This captures the tax-deferral benefit of not switching.
  • Same return before costs (7.0% p.a.) for both ETFs; only the running costs differ.

A lower TER does not automatically make an ETF better. The actual tracking difference over several years is more meaningful; index, replication, domicile, distribution policy and tradability may also differ.

Model calculation. The calculation uses constant assumptions and is not a forecast, not a guarantee and not investment advice. Actual returns fluctuate and can be negative. Disclaimer