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Calculators

Calculator · ETF knowledge

Accumulating vs. Distributing Fund Calculator

Which ETF type gives you more wealth after German taxes? Long-term comparison with Vorabpauschale, partial exemption, and saver's allowance.

Method, sources and limits

The calculator compares accumulating and distributing ETFs as an after-tax model. It shows how return, distribution and tax assumptions work over time.

Method

Two paths
Accumulating and distributing ETFs are calculated with the same return, cost and tax assumptions.
Taxes
Distributions, advance lump sum, partial exemption and saver's allowance are included in the model.
Comparison
The result shows modelled final wealth and tax burden, not the right ETF for an individual.

Sources

  • German Investment Tax Act section 18 for the advance lump sum and section 20 for partial exemptions.
  • German Income Tax Act sections 20, 20 paragraph 9 and 32d for capital income, allowance and tax rate.
  • User assumptions for return, distribution rate, costs and duration.

Limits

  • Market returns, fund domicile, distribution policy and broker rounding can differ.
  • The result is a scenario comparison, not a recommendation for an ETF type.

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Frequently Asked Questions

What is the difference between accumulating and distributing funds?

Accumulating (thesaurierend) funds automatically reinvest income within the fund. Distributing (ausschüttend) funds pay out income to investors on a regular basis. For tax purposes, accumulating funds are subject to the Vorabpauschale (advance lump sum), while distributing funds are subject to immediate taxation on distributions.

Why does the accumulating fund usually come out ahead?

Because of the tax-deferral effect: the Vorabpauschale is typically lower than the full distribution tax. The untaxed capital continues to compound (compound-interest effect). The advantage grows with the investment horizon.

When is the distributing fund better?

When the Sparerpauschbetrag (saver's allowance) fully covers the distributions, and the Vorabpauschale on the accumulating fund would already use up the allowance. For short investment horizons, the difference is negligible.

Is the Vorabpauschale credited when I sell?

Yes. Previously paid Vorabpauschale amounts increase the tax cost basis and reduce the taxable gain on sale. There is no double taxation.

Does the Teilfreistellung (partial exemption) apply to both variants?

Yes. For equity-fund ETFs, 30 % of income is tax-exempt: for distributions, the Vorabpauschale, and capital gains on sale alike.

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Accumulating vs. Distributing — What Is the Difference?

With accumulating funds (thesaurierend), all income (dividends, interest) is automatically reinvested within the fund. The fund's value increases, but no cash flows into your account. For tax purposes, accumulating funds are subject to the annual Vorabpauschale (advance lump sum) — a minimum tax based on the Basiszins (base interest rate).

Inputs

Aktuell für 2026

Your Tax Profile

EUR

of EUR 1.000

After 20 Years (after sale and taxes)

Accumulating Advantage

+EUR 4.067,11+2.3%

Accumulating

EUR 180.287,59

Distributing

EUR 176.220,48
AccumulatingDistributing
Total Tax BurdenEUR 16.738,4EUR 16.554,87
ContributedEUR 82.000EUR 82.000
Final Value After TaxEUR 180.287,59EUR 176.220,48
Year-by-Year Details
YearAccum. ValueAccum. VP TaxDistrib. ValueDistrib. Tax
1EUR 14.462,36EUR 0EUR 14.410,62EUR 0
2EUR 19.247,31EUR 0EUR 19.135,11EUR 0
3EUR 24.378,16EUR 0EUR 24.195,81EUR 0
4EUR 29.879,93EUR 0EUR 29.616,64EUR 0
5EUR 35.779,41EUR 0EUR 35.423,22EUR 0
6EUR 42.105,37EUR 0EUR 41.643EUR 0
7EUR 48.888,63EUR 0EUR 48.305,4EUR 0
8EUR 56.162,26EUR 0EUR 55.441,91EUR 0
9EUR 63.961,7EUR 0EUR 63.086,27EUR 0
10EUR 72.324,18EUR 0,77EUR 71.274,62EUR 0
11EUR 81.256,62EUR 35,35EUR 80.045,66EUR 0
12EUR 90.797,83EUR 72,3EUR 89.409,04EUR 31,82
13EUR 100.989,31EUR 111,76EUR 99.404,17EUR 66,39
14EUR 111.875,4EUR 153,9EUR 110.073,65EUR 103,31
15EUR 123.503,43EUR 198,92EUR 121.463,01EUR 142,7
16EUR 135.923,94EUR 247,02EUR 133.620,8EUR 184,75
17EUR 149.190,98EUR 298,38EUR 146.598,88EUR 229,64
18EUR 163.362,22EUR 353,25EUR 160.452,57EUR 277,57
19EUR 178.499,3EUR 411,85EUR 175.240,96EUR 328,72
20EUR 194.668,04EUR 474,45EUR 191.027,13EUR 383,32
EUR 180.287,59

Netto

Portfolio berechnen →

Distributing funds (ausschüttend) pay out income on a regular basis. These distributions are taxed immediately: Abgeltungsteuer (25%), Solidaritätszuschlag (5.5%), and, if applicable, Kirchensteuer (church tax) are withheld directly.

Why Does the Accumulating Fund Usually Win?

The decisive advantage is the tax deferral effect (Steuerstundungseffekt). The Vorabpauschale is based on the Basiszins (2026: 3.20%), not on the actual return. For an ETF with a 7% return, the Vorabpauschale is significantly lower than the full distribution tax. The untaxed capital continues to compound — the compounding effect makes a noticeable difference over 20-30 years.

When Is the Distributing Fund Better?

In a few cases, the distributing fund can be equivalent or even slightly better: when the Sparerpauschbetrag (saver's lump sum of EUR 1,000) covers all distributions and, at the same time, the Vorabpauschale on the accumulating fund uses up the full allowance. For very short investment horizons (under 5 years), the difference is generally negligible. Some investors also prefer the distributing variant for the psychological benefit of receiving regular income.