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ETF cost calculator

Estimate what an ETF costs to own: the expense ratio over the years you hold it, plus the bid-ask spread when you buy and sell.

By Adam Patti, Chief Executive Officer, VistaShares | Updated November 2026

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What an ETF costs to own

Expense ratio cost
$250
Trading cost (buy and sell)
$10
Estimated total
$260

Hypothetical estimate that ignores investment gains or losses, commissions, taxes and changes in fees or spreads. Half the spread is assumed to be paid on the purchase and half on the sale. Not the cost of any specific fund.

How it works

Owning an ETF has two main costs: the expense ratio, charged every year as a share of assets, and trading costs, mainly the bid-ask spread paid when buying and selling.

Formula. Expense ratio cost = amount times expense ratio times years held. Trading cost = amount times the bid-ask spread. Total = the two added together.

Worked example. $10,000 at a 0.50% expense ratio for 5 years costs about $250 in fees, plus about $10 in spread at 0.10%, for about $260. At a 0.75% expense ratio the fee portion is about $375.

Assumptions. A simple estimate that ignores investment gains or losses, commissions and taxes; in practice the fee is charged on a changing balance.

FAQ

Frequently asked questions

How do you calculate the cost of owning an ETF?

Multiply the amount by the expense ratio and the number of years held, then add the amount times the bid-ask spread for buying and selling.

What is an expense ratio?

The annual fee a fund charges, expressed as a percentage of assets and deducted from the fund's returns rather than billed directly.

What is a bid-ask spread?

The gap between the price buyers pay and sellers receive. It is a cost each time shares are traded, smaller for heavily traded ETFs.

Are there other costs?

Possibly commissions, taxes on distributions and gains, and premiums or discounts to net asset value when trading.

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For educational purposes only. This material is not investment, legal or tax advice, and it is not a recommendation or offer to buy or sell any security. Figures from third-party sources are believed to be reliable as of the dates shown but are not guaranteed. Investments involve risk, including possible loss of principal.