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⚠ Fees compound too — against you

Investment Fee Impact Calculator

See exactly how much a 0.5%, 1%, or 1.5% annual fee costs you over time — and how much more you keep by switching to a low-cost fund.

$
Starting portfolio value
$
Added each year
Before fees 7%
Years invested 30 yrs
Low-cost fund
%
e.g. Vanguard VTI = 0.03%
High-cost fund
%
e.g. active managed fund avg
Low-cost value
$0
High-cost value
$0
Fee drag cost
$0
% lost to fees
0%
Low-cost fund
High-cost fund
Total invested
Year Low-cost value High-cost value Fee drag to date Annual fee paid

Why fees matter so much: Investment fees compound against you every year, just like returns compound for you. A 1% annual fee doesn't cost 1% of your final portfolio — it costs far more because every dollar lost to fees today can't compound over the remaining years. On a $100,000 portfolio earning 7% for 30 years, the difference between 0.03% and 1% fees is over $180,000 in lost wealth.

Fee calculations assume fees are deducted annually from portfolio value. Actual fund expenses may be deducted differently. Does not account for taxes, advisor fees, transaction costs, or fund performance differences. Low-cost funds don't guarantee better performance — they guarantee lower costs. This calculator is for educational purposes only. Not financial advice.

How the fee impact calculator works

An expense ratio is the annual fee a fund charges as a percentage of your investment. It's deducted automatically — you never write a check, which is exactly why most investors underestimate its impact. A 1% annual fee on a $100,000 portfolio is $1,000 in year one. But in year 30 of a growing portfolio, that same 1% is tens of thousands per year — and every dollar paid in fees is a dollar that can't compound for the remaining years.

This calculator compares two funds side by side — a low-cost index fund (like Vanguard VTI at 0.03%) and a higher-cost active fund (typical average ~1%). The difference in final portfolio value is your "fee drag" — the wealth destroyed by higher fees over your investing lifetime.

How to use this calculator

Fees reduce your real return alongside inflation. Use the inflation-adjusted returns calculator to see the combined effect of both on your purchasing power.