How much money can I build with an ETF savings plan?

It depends on three factors: savings rate, investment horizon, and return. With EUR 200 monthly, 7% return, and a 20-year horizon, you end up with approximately EUR 104,000 -- from only EUR 48,000 in contributions. The longer the period, the stronger the compound interest effect. Over 30 years, the same example grows to over EUR 243,000. Use our calculator to compute your individual situation.

What return is realistic for ETFs?

Broadly diversified equity ETFs (e.g., MSCI World) have historically achieved an average return of 7-8% per year, before costs and inflation. After deducting the TER (typically 0.10-0.50%) and inflation (approx. 2%), a real return of about 4-5% remains. However, there are no guarantees: in individual years, returns can range from -40% to +40%. What matters is the long-term average over at least 10-15 years.

What is the advance lump sum tax and how is it calculated?

The advance lump sum (Vorabpauschale) is an annual prepaid tax on unrealized ETF gains that has applied in Germany since 2018. It is calculated as: Base return = Fund value at start of year x base interest rate (2025: 2.29%) x 0.7. The advance lump sum is capped at the actual gain for the year. The partial exemption (30% for equity funds) is deducted, then the tax-free allowance (EUR 1,000 / EUR 2,000). Capital gains tax of 25% plus solidarity surcharge applies to the remaining amount.

How does partial tax exemption work for ETFs?

Partial tax exemption exempts a portion of ETF returns from taxation: 30% for equity funds (at least 51% stock share), 15% for mixed funds (25-50% stock share), 0% for other funds. An equity fund ETF with EUR 1,000 in gains is thus taxed on only EUR 700. At 25% capital gains tax plus 5.5% solidarity surcharge, this results in an effective tax burden of approximately 18.5% instead of 26.4%. The partial exemption applies both to the advance lump sum and upon sale.

How long will my ETF wealth last with monthly withdrawals?

It depends on the ratio between withdrawal rate and return. With EUR 200,000 capital, EUR 1,000 monthly withdrawal, and 4% return (after TER), the wealth lasts approximately 25 years. The classic 4% rule states: If you withdraw a maximum of 4% of your capital annually, you can maintain your wealth with high probability over 30 years. Important: Inflation increases withdrawal needs over time -- our calculator accounts for this.

What is compound interest and why is it so important?

Compound interest means your gains themselves generate gains. At 7% return, your capital roughly doubles every 10 years. But the effect accelerates: in the first 10 years, EUR 200/month grows to about EUR 35,000. In the second 10 years, another EUR 69,000 is added -- even though you contribute the same amount. After 30 years, the total is EUR 243,000, of which EUR 171,000 is pure capital gains. This shows: time is the most important factor in investing.

How do fund costs (TER) affect long-term returns?

The TER (Total Expense Ratio) is deducted annually from fund assets and acts as a return killer through the compound interest effect. With EUR 200/month over 30 years: At 0.2% TER, you reach approximately EUR 234,000, but at 0.5% TER only about EUR 222,000 -- a difference of EUR 12,000. At 1.5% TER (typical for active funds), the result drops to about EUR 190,000. This is why financial experts recommend low-cost index ETFs with a TER below 0.3%.

Should I invest monthly or as a lump sum?

Statistically, a lump sum investment achieves higher returns because the money works in the market longer (in about 66% of cases, lump sum beats regular investing). But: a monthly savings plan offers the cost-averaging effect -- you buy more shares when prices are low and fewer when high. For most investors, the savings plan is the better choice because: a) most people don't have large capital for a lump sum, b) a savings plan is psychologically easier to maintain, c) timing risk is reduced.

How are ETF gains taxed in Germany?

ETF gains in Germany are subject to capital gains tax: 25% Abgeltungssteuer plus 5.5% solidarity surcharge (effectively 26.375%). With church tax obligation, the capital gains tax is slightly reduced (formula: 25% / (1 + church tax rate)), but church tax is added on top. Tax-free allowance: EUR 1,000 per person (EUR 2,000 for married couples). Important: The partial exemption reduces taxable returns (30% for equity funds). Additionally, the annual advance lump sum tax (Vorabpauschale) is levied on unrealized gains.

What is a safe withdrawal rate?

The most well-known rule of thumb is the 4% rule from the Trinity Study (1998): If you withdraw a maximum of 4% of your initial portfolio value (inflation-adjusted) annually, historically you would have had capital remaining after 30 years in 95% of cases. For a portfolio of EUR 500,000, that would be EUR 20,000 per year or EUR 1,667 monthly. However: the study is based on US data. For Europe, many experts recommend a more conservative rate of 3-3.5%. Our calculator shows you exactly how long your capital lasts at different withdrawal rates.

100 EUR vs 200 EUR vs 500 EUR ETF Savings Plan: What Difference Does It Make After 30 Years? | ETF Savings Plan Calculator

<h2>ETF Savings Plan: What Does Each Savings Rate Yield?</h2>

<p>One of the most common questions from ETF beginners is: How much should I save monthly? The answer depends on your income, expenses, and goals. In this article, we calculate three popular savings rates -- EUR 100, EUR 200, and EUR 500 -- and show what develops from them after 10, 20, and 30 years.</p>

<h2>The Three Scenarios at a Glance</h2>

<p>We calculate with 7% average annual return and 0.2% TER (effectively 6.8% after costs). All amounts before taxes and inflation.</p>

<p><strong>EUR 100 monthly:</strong> After 10 years: EUR 17,200 (EUR 12,000 contributed, EUR 5,200 gains). After 20 years: EUR 50,800 (EUR 24,000 contributed, EUR 26,800 gains). After 30 years: EUR 118,600 (EUR 36,000 contributed, EUR 82,600 gains). After 40 years: EUR 257,000 (EUR 48,000 contributed, EUR 209,000 gains).</p>

<p><strong>EUR 200 monthly:</strong> After 10 years: EUR 34,400 (EUR 24,000 contributed, EUR 10,400 gains). After 20 years: EUR 101,600 (EUR 48,000 contributed, EUR 53,600 gains). After 30 years: EUR 237,200 (EUR 72,000 contributed, EUR 165,200 gains). After 40 years: EUR 514,000 (EUR 96,000 contributed, EUR 418,000 gains).</p>

<p><strong>EUR 500 monthly:</strong> After 10 years: EUR 86,000 (EUR 60,000 contributed, EUR 26,000 gains). After 20 years: EUR 254,000 (EUR 120,000 contributed, EUR 134,000 gains). After 30 years: EUR 593,000 (EUR 180,000 contributed, EUR 413,000 gains). After 40 years: EUR 1,285,000 (EUR 240,000 contributed, EUR 1,045,000 gains).</p>

<h2>What Does This Mean for Retirement?</h2>

<p>Let's translate the final results into monthly withdrawals using the 4% rule. With EUR 100 savings rate over 30 years: EUR 118,600 capital yields approximately EUR 395 monthly withdrawal. With EUR 200 over 30 years: EUR 237,200 yields approximately EUR 790 monthly. With EUR 500 over 30 years: EUR 593,000 yields approximately EUR 1,977 monthly. This shows: Even with small amounts, you can build a meaningful supplementary pension. But those aiming for comfortable withdrawals should invest as much as possible -- and start as early as possible.</p>

<h2>Dynamic Savings Rate: Start Small, Increase</h2>

<p>The good news: You don't have to manage EUR 500 right away. Many investors start with EUR 100 and increase their savings rate annually by 5-10% as their income grows. Example: Starting with EUR 100 and a 5% annual increase results in approximately EUR 177,000 after 30 years -- significantly more than the EUR 118,600 without increases.</p>

<h2>Accounting for Inflation</h2>

<p>The figures above are nominal values. At 2.5% inflation per year, EUR 237,200 in 30 years only has the purchasing power of approximately EUR 113,000 in today's euros. This sounds sobering but is still a massive gain compared to not investing -- because the EUR 72,000 in contributions would only have the purchasing power of EUR 34,000 in a savings account.</p>

<h2>What Is the Right Savings Rate for You?</h2>

<p>As a rule of thumb, financial experts recommend: Save 15-20% of your net income for long-term wealth building. At EUR 2,500 net, that would be EUR 375-500. But: Every euro counts. Better to save EUR 50 than nothing at all. You can adjust the savings rate at any time. Start with what you can afford and increase gradually.</p>

<h2>The Psychological Factor: Why Regular Is Better Than Perfect</h2>

<p>Many people hesitate to start because they're waiting for the "right moment." Studies show: Market timing almost never works. Even someone who always invests at the worst possible time (at the peak before every crash) has outperformed someone who never invested at all. The reason: Markets always recover, and the compound interest effect compensates even for unlucky timing. So: Don't think about the perfect entry point -- set up the savings plan and let it run.</p>

<h2>The 50-30-20 Rule as Guidance</h2>

<p>The well-known budget rule states: 50% of your net income for needs (rent, groceries, insurance), 30% for wants (leisure, shopping, vacation), and 20% for saving and debt repayment. At EUR 2,500 net, that's EUR 500 for saving -- perfect for an ETF savings plan. If 20% seems unrealistic, start with 10% and work your way up. Even 5% is better than nothing.</p>

<h2>Lump Sum Plus Savings Plan: The Combination Strategy</h2>

<p>Do you already have savings sitting in a savings account? Then a combination of lump sum investment and savings plan can make sense. Statistically, lump sum investing achieves higher returns (in about 66% of cases). But psychologically, many investors feel more comfortable investing capital in tranches -- for example, 50% immediately and the rest spread over 6 months. Our calculator allows exactly this calculation: Enter initial capital and combine it with a monthly savings rate.</p>

<h2>Conclusion: Just Start</h2>

<p>The perfect savings rate doesn't exist. There's only one wrong savings rate: zero. Every euro you invest today has decades to grow. Don't wait for the perfect moment -- it never comes. Set up a savings plan today, even if it's only EUR 25. In a year, you'll look back and be glad you started.</p>

<p>Calculate your personal result with different savings rates in our <a href="/en/etf-savings-plan-calculator">ETF Savings Plan Calculator</a>.</p>