Investment Fee Calculator
Calculate the true cost of investment fees over time. See how expense ratios and advisor fees compound to cost you hundreds of thousands in lost growth.
Investment Details
Fees
Cost of Fees Over 30 Years
29.9% of potential growth lost to fees
The Impact of Fees
Fee Impact Over Time
| Year | Without Fees | With Fees | Lost to Fees |
|---|---|---|---|
| Year 5 | $197,763 | $185,777 | $11,985 |
| Year 10 | $334,880 | $297,355 | $37,525 |
| Year 15 | $527,193 | $442,492 | $84,702 |
| Year 20 | $796,923 | $631,283 | $165,641 |
| Year 25 | $1,175,234 | $876,858 | $298,376 |
| Year 30 | $1,705,833 | $1,196,297 | $509,536 |
Fee Comparison Scenarios
| Investment Type | Total Fees | Final Balance | Lost to Fees |
|---|---|---|---|
| Index Fund Only | 0.03% | $1,694,373 | $11,460 |
| Low-Cost ETF | 0.10% | $1,667,951 | $37,882 |
| Average Mutual Fund | 0.50% | $1,525,185 | $180,648 |
| Fund + Robo-Advisor | 0.35% | $1,577,125 | $128,708 |
| Fund + Financial Advisor | 1.50% | $1,222,750 | $483,083 |
| High-Cost Active Fund | 1.50% | $1,222,750 | $483,083 |
Impact of Reducing Fees
| Fee Reduction | New Total Fee | Final Balance | Extra Savings |
|---|---|---|---|
| -0.25% | 1.35% | $1,263,634 | +$67,337 |
| -0.5% | 1.10% | $1,335,118 | +$138,821 |
| -0.75% | 0.85% | $1,411,009 | +$214,712 |
| -1% | 0.60% | $1,491,581 | +$295,284 |
| -1.5% | 0.10% | $1,667,951 | +$471,654 |
Understanding Investment Fees
Expense Ratios
The annual fee charged by funds, expressed as a percentage. Index funds charge 0.03-0.20%, while active funds charge 0.50-1.50%. Over decades, this difference costs hundreds of thousands.
Advisor Fees
Financial advisors typically charge 0.5-1.5% of assets annually. Robo-advisors charge 0.25-0.50%. Consider if the advice is worth the long-term cost.
The 1% Rule
A 1% fee may seem small, but over 30 years it can cost 25-30% of your potential wealth. Reducing fees from 1.5% to 0.1% could mean hundreds of thousands more in retirement.
Frequently Asked Questions
How much do fees really cost?
Example: $100,000 invested for 30 years at 7% return:
| Fee | Final Balance | Lost to Fees |
|---|---|---|
| 0.03% | $756,000 | $5,000 |
| 0.50% | $661,000 | $100,000 |
| 1.00% | $574,000 | $187,000 |
| 1.50% | $500,000 | $261,000 |
What is a good expense ratio?
- Excellent: 0.03-0.10% (index funds)
- Good: 0.10-0.25%
- Average: 0.50-0.75%
- High: 1.00%+
Types of investment fees
- Expense ratio: Annual fund operating costs
- Advisor fee: Annual fee for advice (0.5-1.5%)
- Sales load: Commission when buying/selling (avoid these)
- 12b-1 fee: Marketing fee (included in expense ratio)
- Trading costs: Bid-ask spreads, commissions
How to reduce fees
- Use low-cost index funds (Vanguard, Fidelity, Schwab)
- Consider robo-advisors (0.25%) vs human advisors (1%+)
- Avoid funds with sales loads
- Minimize trading and turnover
- Consolidate accounts for fee breaks