How Expenses Impact Fund Returns

A small annual fee compounds into a big number. See what fees cost your portfolio.

Your numbers

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Lost to fees

Fees cost you
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Compares future value at the gross return versus the return minus the expense ratio. Fees are charged on the whole balance every year, so they compound against you.
About this calculator

How Expenses Impact Fund Returns

A fund expense calculator shows how much a mutual fund or ETF's expense ratio costs you over time, by comparing your balance with and without the annual fee.

Fees compound against you

An expense ratio is charged on your entire balance every year, so a seemingly small fee, say 0.75%, is a 0.75% lower return annually, compounded. Over decades, that can consume a large share of your final balance, sometimes a quarter or more, because the fee applies to a growing pool of money.

Why low-cost funds win

This math is why low-cost index funds have become the default for long-term investors. Minimizing the expense ratio is one of the few reliable ways to keep more of your return compounding for you rather than for the fund company. Even a fraction of a percent, over a lifetime, is worth thousands.

How to use it

  1. Enter your starting balance and monthly contribution.
  2. Set the number of years and the return before fees.
  3. Enter the fund's expense ratio.
  4. See how much the fee costs you over time.

Frequently asked questions

How much do fund fees cost over time?

A 0.75% expense ratio can consume a quarter or more of your final balance over decades, because the fee is charged on your whole balance every year.

What is a good expense ratio?

Low-cost index funds often charge under 0.10%. Anything approaching 1% is expensive and drags heavily on long-term returns.

Why do small fees matter so much?

Because they compound. A 1% fee is a 1% lower return every year, and over a lifetime that quietly consumes a large share of your growth.

See the exact formula and a worked example on our methodology page.

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