A single percentage point of return, compounded for years, is worth more than it looks.
A higher-return impact calculator shows how much a single extra percentage point of annual return adds to your investment over time, a difference that grows startlingly large over long horizons.
Because returns compound, a difference that looks tiny in one year balloons over decades. One extra point of annual return on a long-term portfolio can mean tens of percent more at the end. The calculator makes this concrete for your own numbers, showing why the rate you earn, after costs, matters so much.
The same math that rewards a higher return punishes fees, because a 1% annual fee is a 1% lower return every year, compounded. Over an investing lifetime, a seemingly small expense ratio can quietly consume a large share of the final balance. Minimizing costs is one of the few reliable ways to capture that extra point.
Over decades, a lot, compounding turns a small annual difference into a large gap. Enter your numbers to see the dollar impact.
A 1% fee lowers your return by 1% every year, compounded. Over a lifetime it can consume a big share of your final balance.
Higher expected returns usually mean more risk. Lowering fees is a more reliable way to keep more of your return.
See the exact formula and a worked example on our methodology page.