ExampleIllustrative ETF projection - adjust return, MER, and wrapper (TFSA / RRSP / taxable) to compare

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About this calculator

Updated April 2026

The ETF growth calculator projects long-term returns on index ETFs (VEQT, XEQT, VGRO, XBAL, VFV) after MER, inflation, and tax. It's the only projection that matters for most Canadian DIY investors - and the one most charting tools get wrong because they ignore MER drag or withholding tax on US-listed ETFs.

What you can do with it

  • Compare a 0.20% MER all-in-one ETF vs a 2.00% MER mutual fund over 30 years.
  • Project retirement balance from a $500/month TFSA contribution at 7% return.
  • Model a 70/30 stock/bond portfolio vs 100% equity for different risk levels.
  • See the effect of US withholding tax on VFV vs VOO held in a non-RRSP account.

How the math works

Growth uses monthly compounding at your chosen gross return, then subtracts annualized MER as a drag on balance. For non-registered accounts, dividend income is taxed at your marginal rate annually; capital gains are assumed realized on final sale. For US-listed ETFs held outside RRSP, a 15% withholding tax on US dividends is applied (treaty rate - RRSP exempts this).

Canadian context - 2026

Over 30 years at 7% gross return, the difference between a 0.20% MER ETF and a 2.00% MER mutual fund on a $100,000 portfolio is roughly $350,000 of lost growth. Popular all-in-one ETFs: VEQT/XEQT (100% equity, 0.22% MER), VGRO/XGRO (80/20, 0.24%), VBAL/XBAL (60/40, 0.24%).

Frequently asked questions

What is MER and how does it affect long-term returns?

MER (Management Expense Ratio) is the annual fee charged by a fund, expressed as a percentage of assets. A 1% MER on a $100,000 portfolio costs $1,000/year regardless of performance. Over 30 years at 7% gross return, a 1% MER reduces your ending balance by roughly 20% compared to a 0.2% MER ETF.

Should I hold ETFs inside TFSA or RRSP?

For Canadian equity ETFs, either works well. For US equity ETFs, holding in an RRSP avoids the 15% US withholding tax on dividends under the Canada-US tax treaty. TFSA is best for assets you expect to grow significantly since withdrawals are tax-free. The Account Optimizer can help rank these decisions.

What are all-in-one ETFs (XBAL, VGRO, etc.)?

All-in-one or asset allocation ETFs hold a diversified portfolio of global equities and bonds in a single ticker with automatic rebalancing. They are popular for simplicity. Examples include VGRO (80/20 equity/bond), XBAL (60/40), and VCNS (40/60). MERs are typically around 0.20–0.25%.

Go deeper - related guides

Long-form explainers that pair with this calculator.