Investment Fee Impact Calculator
Calculate how investment fees and expense ratios impact long-term returns. Shows fee drag over time, comparing results with and without fees to illustrate the power of cost-conscious investing.
Formula
Final Value = Initial × (1 + Return - Expense Ratio)^Years; Fee Drag = Without Fees - With Fees
- Expense ratio compounds over time
- Even 0.5% annually = major impact over decades
- Compare index fund (0.03%) vs actively managed (1%+)
20-Year Investment
Inputs
- Initial Investment ($): 100000 $
- Annual Return (%): 8 %
- Expense Ratio (%): 0.5 %
- Investment Period (years): 20 years
$100k @ 8% = $466.1k. With 0.5% fees = $411.8k. Fee drag = $54.3k (11.6% of returns).
Frequently asked questions
Why do low fees matter?
Over decades, fee drag compounds. A 1% difference in fees costs 25%+ of returns over 30 years.