What this tool calculates
NAV change formulas
Change = ending NAV − starting NAV. Percentage change = change ÷ starting NAV × 100. Annualized rate = ((ending NAV ÷ starting NAV)365 ÷ days − 1) × 100.
User-entered NAV scenario
ETF NAV Erosion Calculator
Measure the change between starting and ending NAV, then reconcile cash distributions paid during the same period. You provide every value. The ETF selector supplies reviewed context and does not fetch live NAV or distribution data.
3.00%A+
NAV Movement
Start
$100.00
End
$105.00
NAV Change$5.00
Change %5.00%
Annualized NAV change rate81.05%
Cash + ending NAV$105.00
Simple net change5.00%
The cash-plus-NAV figure is a simple per-share reconciliation. It is not time-weighted total return and excludes reinvestment, taxes, fees, and distribution timing.
Worked example
NAV rises from $100 to $105 in 30 days
The change is $5.00, or 5.00%. Extending that same 30-day pace mathematically produces a 81.05% annualized NAV change rate. That large extrapolated number is not a forecast or total return.
What NAV erosion means
NAV erosion is a decline in the per-share value of an ETF’s assets after liabilities. Market losses, distributions, fees, leverage, option results, and corporate actions can all affect NAV. The decline deserves investigation, but it does not by itself reveal distribution quality or total return.
For example, a $100 starting NAV, $92 ending NAV, and $12 of cash distributions produces a simple cash-plus-ending-NAV value of $104.00 and a 4.00% net change. This is arithmetic context, not time-weighted total return, because it ignores payment timing and reinvestment.
Use matching dates and units
Use per-share NAV values and per-share cash distributions covering the same start and end dates. Adjust for splits or reverse splits before comparing. Do not mix market price with NAV, or a trailing distribution estimate with cash actually paid during the period.
What this reconciliation leaves out
The calculator excludes distribution timing, reinvestment, taxes, expenses, trading costs, market-price premiums or discounts, and external cash flows. Short periods can also create extreme annualized NAV rates. Use an issuer’s matching-period total-return calculation for a complete performance comparison.
NAV erosion questions
What is ETF NAV erosion?
NAV erosion is a decline in an ETF’s per-share net asset value over time. Market losses, distributions, fees, leverage, option outcomes, and corporate actions can affect NAV. A decline alone does not identify the cause or establish the investor’s total return.
Can an ETF pay distributions while its NAV falls?
Yes. Cash distributions and NAV movement are separate parts of the result. A fund can distribute dividends, option proceeds, gains, or return of capital while NAV declines. Evaluate the cash and ending value over the same period.
Is cash plus ending NAV the same as total return?
No. Adding per-share cash distributions to ending NAV is a simple reconciliation. It does not account for the timing or reinvestment of payments, taxes, trading costs, premiums or discounts, or the methodology required for time-weighted total return.
Verify NAV and distribution inputs against current issuer records. This is an educational calculation, not financial advice or a forecast. Read why yield is not an income-safety score, the methodology, and the financial disclaimer.