Leveraged ETF Decay Calculator

2x daily returns do not equal 2x yearly returns. Volatility drag quietly eats leveraged ETF value โ€” see the math.

No login Educational estimate Shareable URL

Daily reset simulation

Compounds the leveraged return each day exactly like a real fund.

Volatility drag shown

Quantifies how much return is lost to volatility decay.

Any horizon

Model from a week to several years of trading days.

Example Calculation

Run through a typical scenario with the sample values below โ€” hit See an example to load them instantly.

InputSample value
Daily Index Return (%)0.5
Daily Volatility (%)1.5
Trading Days252
Leverage3x
Initial Investment ($)10000
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How to Use This Tool

Follow the steps below to get accurate results.

  1. Enter index behavior Daily index return and daily volatility, plus the number of trading days.
  2. Choose the leverage e.g. 2 for a 2x ETF or 3 for a 3x ETF, and your initial investment.
  3. See the decay effect Volatility drag reduces the leveraged ETF return vs simply multiplying the index return.

Input Fields

  • Daily Index Return (%)  ยท  e.g. 0.5
  • Daily Volatility (%)  ยท  e.g. 1.5
  • Trading Days  ยท  e.g. 252
  • Leverage
  • Initial Investment ($)  ยท  e.g. 10000

Outputs You Will Get

  • Index Return (compounded)
  • Leveraged ETF Return
  • Volatility Drag
  • Final Value
Leveraged ETFs decay in sideways markets due to daily rebalancing โ€” they are for short-term trading.
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How This Calculator Works

2x daily returns do not equal 2x yearly returns. Volatility drag quietly eats leveraged ETF value โ€” see the math.

What you will get

Good to know

Leveraged ETF Decay Calculator is an interactive estimate built for quick planning. Always double-check the numbers that matter before acting on them, and reach out to a professional for personalized advice.

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Frequently Asked Questions

How does the Leveraged ETF Decay Calculator work?

Simply fill in the fields and press Calculate. 2x daily returns do not equal 2x yearly returns. Volatility drag quietly eats leveraged ETF value โ€” see the math.

What information do I need to provide?

Just the basics โ€” Daily Index Return (%) and Daily Volatility (%) and Trading Days, plus a few simple inputs. No account or signup is required; everything runs in your browser.

Is Leveraged ETF Decay Calculator really free to use?

Yes โ€” completely free, with no login, no watermarks and no limits. Bookmark it and share the URL with anyone who needs it.

How accurate is the estimate?

The calculator uses current, standard formulas to produce an educational estimate. Real-world figures can vary based on your specific situation, so treat it as a planning aid rather than a final answer.

Can I use it on my phone?

Absolutely. The tool is fully responsive and works smoothly on mobile, tablet and desktop browsers.

What should I keep in mind?

The result is an estimate for educational purposes only and is not financial, legal or tax advice. Consult a qualified professional before making important decisions.

Disclaimer: The Leveraged ETF Decay Calculator is provided for educational and informational purposes only and does not constitute financial, investment, legal or tax advice. Results are estimates and may not reflect your complete financial situation. Always consult a qualified professional before making financial decisions.