Fund Switching Calculator
Selling a fund with gains triggers tax today. See how many years of lower costs it takes for switching to pay off.
Total value of the fund you hold today
The profit portion. Tax on switching is charged on this.
Applied as a constant: every year returns exactly this amount
Total extra net return per year: lower fees + better dividend-tax efficiency + any other recurring annual difference
Pre-filled at 25%; change it to your own rate if different
How far the table and charts run
The chart that answers the question. Lines cross at the after-tax break-even year.
Staying leads for much longer here because it carries a larger unpaid tax bill. That's why decisions should be made on after-tax values.
Understanding the Results
Switching has a certain upfront cost — the tax you owe today shrinks the amount that keeps compounding (the tax deferral you give up). Against that, the new fund earns a little more every year — an uncertain benefit that takes time to add up.
The after-tax chart crosses far sooner than the before-tax chart because staying is carrying a larger unpaid tax bill. We judge the decision on the after-tax money you actually keep — that's the break-even year shown above. If the annual advantage is zero, switching never wins after tax.