USD Broker Investment Yield Calculator
Investing through a US brokerage in 2026 looks nothing like it did a decade ago. Commission-free trading on stocks and ETFs is now standard across Schwab, Fidelity, Vanguard, Robinhood, M1 Finance and Interactive Brokers (IBKR), fractional shares let you put $5 into Berkshire Hathaway, and as of May 28, 2024 settlement moved from T+2 to T+1 across all US equities, ETFs and corporate bonds, freeing up cash one business day faster. What hasn't changed is the math: expense ratios, account-type tax treatment and fee drag still decide whether a $100,000 portfolio grows to $432,000 or $761,000 over 30 years at a 7% gross return. This calculator helps you model the net outcome across taxable brokerage accounts, Roth IRAs, Traditional IRAs, 401(k)s and HSAs, and compare how fees from different brokers and funds erode compounding. All inputs default to USD and reflect 2026 contribution limits, current SIPC coverage, and the wash-sale and qualified-dividend rules as published by the IRS.
When to use this calculator
- Comparing the long-term cost of a 1.00% advisor wrap fee vs a 0.04% S&P 500 index fund (VOO/IVV/SPLG) before signing an advisory agreement.
- Deciding whether to move HYSA overflow into a taxable brokerage account once your emergency fund is fully funded and Roth IRA is maxed.
- Modeling Roth IRA fund selection — total-market (VTI/FZROX) vs target-date (VTTSX) — across a 25-year accumulation window.
- Evaluating whether a tax-loss harvest at year-end actually pays off after the 30-day wash-sale window and the $3,000 ordinary-income offset cap.
- Choosing between an ETF (VTI, 0.03%) and an equivalent mutual fund (VTSAX, 0.04%) inside a taxable account, factoring in capital gains distributions.
- Stress-testing whether moving from Robinhood to Fidelity or Schwab changes the net outcome once you account for cash-sweep yield differences.
Calculation Example
- $50,000 invested in VTI (0.03% expense ratio) at Fidelity
- 30-year horizon, 7% expected gross annual return
- Net return after fund expenses ≈ 6.97%
How it works
4 min readHow USD brokerage returns actually compound
This calculator applies standard time-value-of-money math: future value = principal × (1 + r)^n, with r expressed per period and n as the number of periods. The mechanics are simple. What separates a good outcome from a mediocre one is everything that quietly subtracts from r: expense ratios, advisory fees, capital-gains drag, and the spread between a money-market sweep and a high-yield savings account. As a fee-only fiduciary would frame it, you cannot control markets, but you can control costs and account location.
Broker comparison: fees that still exist in 2026
Commissions on US-listed stocks and ETFs are $0 at every major US broker — Charles Schwab, Fidelity, Vanguard, E*TRADE, Robinhood, M1 Finance and Interactive Brokers. Where brokers differ in 2026:
Expense ratios — the single biggest lever
A $100,000 portfolio compounding at 7% gross for 30 years:
| Expense ratio | Ending value | Lifetime cost |
|---|---|---|
| 0.03% (VTI, IVV) | ~$754,000 | ~$7,000 |
| 0.10% (typical index) | ~$739,000 | ~$22,000 |
| 0.50% (active fund) | ~$662,000 | ~$99,000 |
| 1.00% (advisor wrap) | ~$574,000 | ~$187,000 |
| 1.50% (load fund + advisor) | ~$498,000 | ~$263,000 |
This is why low-cost index funds — Vanguard's VTI/VOO, iShares' IVV/ITOT, Schwab's SCHB, Fidelity's FZROX — dominate the recommendation lists from fiduciary advisors and from the Bogleheads community.
SIPC vs FDIC — distinct, and often confused
SIPC (Securities Investor Protection Corporation) covers brokerage accounts up to $500,000 in securities, including $250,000 in cash, if the broker-dealer fails. SIPC does not cover market losses. FDIC covers bank deposits up to $250,000 per depositor, per insured bank, per ownership category. High-yield savings accounts (Marcus, Ally, Wealthfront Cash, SoFi) are FDIC-insured. Brokerage cash sweep programs that route to partner banks (Schwab Bank Sweep, Fidelity FDIC-Insured Deposit Sweep) carry FDIC coverage on the cash leg, often expanded to $1M+ across multiple banks. Money-market funds inside a brokerage (SPAXX, VMFXX) are SIPC-covered as securities, not FDIC-insured — they are not bank deposits.
Account types — tax location matters more than fund pick
ETFs vs mutual funds — the in-kind redemption advantage
ETFs use a creation/redemption mechanism with authorized participants that allows them to flush low-basis shares out of the fund without triggering taxable distributions to remaining holders. Mutual funds cannot do this — when other holders redeem, the fund sells securities, and capital gains distributions are passed pro-rata to everyone still holding at year-end. In a taxable account this is real money. VTI and VTSAX hold the same index; in a Roth IRA they are interchangeable; in taxable, VTI is the more efficient vehicle.
Tax-loss harvesting and the wash-sale rule
The IRS wash-sale rule (Section 1091) disallows a loss if you buy a substantially identical security within 30 days before or after the sale — a 61-day window total. The classic harvest: sell VTI at a loss, buy ITOT or SCHB (same exposure, different index), wait 31 days, optionally swap back. Realized losses offset capital gains dollar-for-dollar with no cap, plus up to $3,000 per year against ordinary income ($1,500 if married filing separately). Excess losses carry forward indefinitely.
Cost-basis tracking — Specific ID beats FIFO
For harvesting and donating appreciated shares, the lot-tracking method matters. Schwab and Fidelity default to a Specific Identification / Tax Lot Optimizer methodology that picks the most tax-efficient lot for each sale. Many other platforms default to FIFO, which often realizes the lowest-basis (most-taxed) lot first. Set the cost-basis method on every taxable account before your first sale.
Dividends, DRIP, and qualified treatment
Qualified dividends — from US corporations and most major foreign ADRs held >60 days in the 121-day window around the ex-dividend date — are taxed at 0%, 15% or 20% depending on income. Non-qualified (ordinary) dividends are taxed at marginal rates up to 37%. Most US-listed ETF dividends are qualified. DRIP (Dividend Reinvestment Plans) automatically reinvest distributions commission-free at every major broker, and fractional reinvestment is now universal. Foreign tax credits on ADR dividends are recoverable on Form 1116 (or as a deduction without the form if under $300/$600 MFJ).
Final notes
This calculation is a planning reference, not a recommendation. Tax treatment depends on your bracket, state, filing status and account type, and rules change. Confirm anything material with a CPA or a fee-only fiduciary (NAPFA, XY Planning Network, Garrett Planning Network). Values reviewed May 2026 against current IRS publications and broker fee schedules.
Frequently asked questions
Which US broker has the lowest fees in 2026?
For commission-free stock and ETF investing, Schwab, Fidelity, Vanguard, Robinhood and M1 Finance all charge $0. The real fee difference shows up elsewhere: Fidelity has the highest-yielding default cash sweep (SPAXX), Vanguard has the deepest no-load mutual fund bench, IBKR has the lowest margin rates (~5.5% benchmark), and Robinhood is cheapest for options ($0/contract). For most long-term investors holding low-cost index ETFs, Schwab, Fidelity and Vanguard are functionally tied.
What's the difference between SIPC and FDIC insurance?
FDIC covers bank deposits (checking, savings, CDs) up to $250,000 per depositor per insured bank per ownership category. SIPC covers brokerage accounts up to $500,000 in securities including $250,000 in cash if the broker-dealer fails. SIPC does not protect against market losses. Money-market funds inside a brokerage (SPAXX, VMFXX) are SIPC-covered securities, not FDIC bank deposits, even though they hold T-bills and behave like cash.
Schwab vs Fidelity vs Vanguard — which one should I use?
All three are fiduciary-friendly choices with $0 stock/ETF commissions and access to ultra-low expense ratio index funds. Vanguard pioneered low-cost indexing and is structurally owned by its fund shareholders — best if you primarily buy Vanguard mutual funds. Fidelity has the best default cash sweep yield, a polished interface, and zero-expense-ratio index funds (FZROX, FZILX, FXNAX, FNILX). Schwab has the strongest customer service, excellent fractional shares (Stock Slices), and the broadest banking integration. For a single account, most fee-only advisors would say Fidelity or Schwab edges out Vanguard on the platform itself; for the funds, Vanguard, iShares (BlackRock) and Schwab indices are all excellent.
Why are ETFs more tax-efficient than mutual funds in a taxable account?
ETFs use an in-kind creation/redemption process with authorized participants. When holders sell ETF shares, the fund hands off appreciated securities in-kind instead of selling them, which avoids triggering capital gains inside the fund. Mutual funds must sell securities to meet redemptions, and the resulting capital gains are distributed to every shareholder still on the books at year-end — even if you didn't sell. That's why VTI typically distributes minimal capital gains while many actively managed mutual funds distribute 5–15% of NAV annually. Inside a Roth IRA or 401(k) it doesn't matter; in a taxable account it can be a meaningful drag.
How does tax-loss harvesting work and what is the wash-sale rule?
Tax-loss harvesting means selling a position at a loss to realize a capital loss, then reinvesting the proceeds in a similar (but not substantially identical) security to maintain market exposure. Realized losses offset realized gains dollar-for-dollar, and up to $3,000 of net loss per year can offset ordinary income ($1,500 if married filing separately). The IRS wash-sale rule disallows the loss if you buy a substantially identical security within 30 days before or after the sale — a 61-day window. Swapping VTI for ITOT or SCHB is generally accepted as not substantially identical; buying the same ETF back inside an IRA also triggers the wash rule and permanently disallows the loss.
Is Robinhood safe? Should I move to Schwab or Fidelity?
Robinhood Markets is a FINRA-registered broker-dealer with SIPC coverage up to the standard $500k/$250k limits, same as any other US broker. The 2021 GameStop trading halt and the 2024 SEC fine over options-approval practices are documented in FINRA BrokerCheck and worth reading before committing significant assets. For small accounts or active options trading, Robinhood is fine. For seven-figure long-term portfolios, most fee-only advisors recommend Schwab or Fidelity for the stronger service infrastructure, better cash management, and broader product access (including HSAs, solo 401(k)s, and trust accounts that Robinhood doesn't offer).
Is Interactive Brokers (IBKR) worth it for a long-term US investor?
IBKR shines for two use cases: (1) active margin users — the benchmark rate of roughly Fed Funds + 1.5% is dramatically lower than Schwab's ~11.575%, and (2) investors who need direct access to international exchanges, multi-currency accounts, or specific order types. For a pure buy-and-hold US index investor who never uses margin and stays in USD, IBKR's interface and account experience are overkill compared to Fidelity or Schwab. IBKR Lite (free, payment-for-order-flow model) is closer to Robinhood in feel; IBKR Pro (per-share pricing, no PFOF) is the institutional-grade tier.
What is the T+1 settlement change and does it affect me?
On May 28, 2024 US equities, ETFs, corporate bonds and municipal bonds moved from T+2 to T+1 settlement. In practice this means: proceeds from a sale are available to withdraw or invest the next business day instead of two, options exercised into stock settle one day faster, and dividend ex-dates align more tightly. Mutual funds remain on their own settlement cycles (typically T+1 to T+2 depending on the fund). For most long-term investors this is invisible; for active traders and tax-loss harvesters it slightly tightens cash management.