How the Bitcoin ETF Calculator works
A spot Bitcoin ETF holds bitcoin on your behalf and charges an annual management fee, called the expense ratio, for doing so. This calculator projects what a lump-sum position would be worth after that fee, using the standard compound-growth formula with the fee applied each year. It assumes a single up-front investment, a constant annual return that you supply, and the fee deducted once per year; it does not model additional contributions or taxes.
The formula
For an initial investment P, an expected annual return r, an expense ratio e, and a holding period of n years, the net ending value is P x ((1 + r)(1 - e))n. Each year the balance first grows by a factor of (1 + r) with the market, then is reduced by (1 - e) for the fee. Setting the fee to zero gives the gross value P x (1 + r)n, and the gap between the two figures is the true lifetime cost of the expense ratio.
What each result means
- Net ending value: your projected balance after the expense ratio has been charged in every year of the holding period.
- Total net gain: the net ending value minus your initial investment, shown in dollars and as a percentage of what you put in.
- Total cost of fees: the difference between an identical fee-free fund and the net value. It captures both the fees deducted and the compounding growth those fees no longer earn.
- Value with no fee: the gross balance you would reach with the same return and a 0% expense ratio, provided as a comparison anchor.
Choosing your inputs
- Use the exact expense ratio from your fund's prospectus. Spot Bitcoin ETFs commonly charge about 0.15% to 0.25%, while some older products such as GBTC charge closer to 1.5%.
- The expected annual return is your own assumption, not a forecast from this tool. Bitcoin is volatile, so run an optimistic case and a pessimistic case rather than trusting a single number.
- The calculator applies the fee once per year for simplicity; real funds accrue it daily, so a small timing difference is expected but immaterial for planning.
Reading the result
Compare the net ending value against the fee-free value to see how much the expense ratio quietly removes over time. At a 0.25% fee the drag is modest, but at 1.5% it can consume a large share of your gains across a long holding period, which is why fee differences between otherwise similar Bitcoin ETFs matter more the longer you hold. These figures are a projection based on your assumptions, not investment advice.