Canadian ETF Calculator 2026

Rates verified Nov 2026 · Sources: CRA, Service Canada

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

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About this calculator

Updated June 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%).

Official sources

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.

VEQT vs XEQT: which is better for Canadians?

VEQT (Vanguard) and XEQT (iShares) are both 100% global equity all-in-one ETFs with virtually identical MERs (~0.22%). The main differences are slight weighting variations and the fund company. Neither is clearly better - both are excellent low-cost options. The more important decision is choosing 100% equity vs a balanced option like VGRO or XBAL.

Should I hold ETFs inside TFSA or RRSP?

For Canadian equity ETFs, either works well. For US equity ETFs (VFV, VOO, QQQ), 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 fully tax-free. The TFSA vs RRSP calculator can compare the two accounts for your situation.

What is the withholding tax on US ETFs in Canada?

US-listed ETFs pay dividends subject to a 15% withholding tax at source for Canadian investors, unless held in an RRSP (which is treaty-exempt). Canadian-listed ETFs that hold US stocks (like VFV vs VOO) still incur the withholding tax inside the ETF - only holding the US-listed security directly in RRSP fully eliminates it.

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%.

What is a realistic return assumption for an ETF calculator?

A commonly used long-term return assumption for a 100% global equity portfolio (like VEQT/XEQT) is 6–8% nominal or 4–6% inflation-adjusted. The calculator defaults to 7% which reflects historical long-run returns. More conservative assumptions (5–6%) are appropriate for balanced portfolios. These are projections, not guarantees.

How much does a 1% MER cost over 30 years?

On a $200,000 portfolio at 7% gross return over 30 years, a 0.20% MER ETF grows to approximately $1,430,000, while a 1.20% MER mutual fund grows to approximately $1,140,000 - a difference of about $290,000 in lost returns solely due to fees. The ETF calculator shows this comparison in real time.

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