Investment Fee Calculator
See how annual fees compound against you. Compare two expense ratios over any period.
A 1% fee sounds small. Over 30 years it can take a quarter of your final balance.
Fees compound just like returns, but in the wrong direction. This calculator shows the true cost.
How it works
Both funds earn the same gross return. Each then has its fee deducted monthly from the balance.
The gap grows every year because money lost to fees would have compounded too.
The formula
Cost of fee = fees paid plus the growth those fees would have earned.
Tips
- Broad index funds charge 0.03% to 0.20%. Many active funds charge 0.5% to 1.5%.
- Advisers who charge 1% of assets are also a fee. Make sure the advice is worth it.
Frequently asked questions
What is an expense ratio?
The yearly fee a fund takes from its assets, shown as a percentage. It is deducted automatically, so you never see a bill.
Are there other fees?
Trading costs, account fees and sales loads can all add up. Index funds at a low cost broker avoid most of them.
This is not financial advice. Nothing on this site is investment, tax, legal or financial advice of any kind.
The calculators give simplified estimates from the numbers you enter. They ignore taxes, fees, rate changes and real market returns, and they can be wrong.
Do not make financial decisions based on these results. Speak to a licensed financial adviser, accountant or lender before acting, and read the full disclaimer.