PEA Simulator: Capital Projection & Returns 2026

The Plan d'Epargne en Actions (PEA) is a tax-advantaged wrapper dedicated to investing in European equities and eligible ETFs. It allows you to benefit from income tax exemption after 5 years of holding, with gains subject only to social contributions of 17.2%. The contribution ceiling is set at 150,000 euros.

Our simulator applies monthly compound interest to your initial capital and regular contributions, taking the PEA contribution ceiling into account. Gains are projected using the annual return rate you specify, then taxation is calculated based on the holding period: flat tax of 30% before 5 years, or social contributions of 17.2% only after 5 years.

Formula: capital is compounded each month at a monthly rate equal to the annual rate divided by 12. Monthly contributions are added to capital each month, within the limit of the 150,000 euro cumulative contribution ceiling.

The return on a PEA depends entirely on the underlying investments chosen. Historically, an ETF tracking the MSCI World index has delivered approximately 8 to 10% per yearover 20 years (dividends reinvested). An S'P 500 ETF has shown slightly higher performance, around 10 to 12% annualized over the same period, but with greater geographic concentration.

For a conservative investor, assuming 6 to 7% annual return is a reasonable hypothesis that accounts for downturns and inflation. European equities (Euro Stoxx 50 index) have historically delivered a lower return, around 5 to 7% annualized, but with the advantage of direct PEA eligibility.

The PEA's tax advantage is considerable over the long term. After 5 years of holding, the income tax exemption represents a saving of 12.8 percentage points compared to a standard brokerage account (CTO) subject to the 30% flat tax. On a gain of 100,000 euros, that represents 12,800 euros in tax savings.

To make the most of your PEA, the most proven strategy is dollar-cost averaging (DCA) in diversified ETFs. By investing a fixed amount each month, you smooth out the purchase price and avoid the risk of investing at the top. This disciplined approach is recommended by the majority of academic studies for individual investors.

The choice of broker is also decisive: online brokers (Boursorama, Fortuneo, Bourse Direct) offer significantly lower brokerage fees than traditional banks. Over 20 years of monthly DCA, the fee difference can amount to several thousand euros. Choose a PEA with free or reduced-fee orders on ETFs.

Finally, remember that the PEA can be opened with no significant deposit: the important thing is to start the clock to begin the 5-year countdown. Even with an initial deposit of 10 euros, you trigger the tax timer. You can fund your PEA more substantially later, when your savings capacity allows it.