Investment Fee Impact Calculator
See how much a 1% expense ratio costs you over decades.
Cost of higher fees
$150,323
16.0% of Fund A's ending balance, lost to higher fees
Fund A (0.05% fee)
$937,005
Fund B (0.85% fee)
$786,682
Fees are subtracted from the annual return and applied to the full balance each year. Contributions are added at year end.
About
A 1% fund fee sounds small. Over 30 years it can eat a quarter of your final balance. This calculator compares two funds with different expense ratios and shows the gap in dollars at retirement.
How to use
- Enter your starting balance and yearly contribution.
- Enter the expected return and your time horizon.
- Enter two expense ratios to compare.
- See the side-by-side ending balances and the dollar gap.
FAQ
What's a typical expense ratio?+
Index funds run 0.03% to 0.20%. Actively managed mutual funds often charge 0.5% to 1.5%. Many 401(k) plans have funds in the 0.7%+ range.
Does this assume the funds return the same?+
Yes. The only variable is the fee. In practice high-fee funds rarely outperform after costs, so the real-world gap is usually larger.