Estimate the long-term cost of investment fees and their compounded drag on portfolio growth over a chosen time horizon. Use it to test different inputs quickly, compare outcomes, and understand the main factors behind the result before moving on to related tools or deeper guidance.
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Fee Analysis
Even small annual fees compound into enormous costs over decades. This calculator shows the total dollar drag of investment fees on your portfolio by comparing growth with and without the fee.
A 1.5% annual fee might seem small, but it compounds against you just as returns compound for you. On a 100,000 portfolio earning 8% over 30 years, that 1.5% fee reduces the final balance by roughly 35% compared to a fee-free alternative.
The longer the time horizon, the greater the impact. Fee drag is one of the most predictable determinants of long-term investment outcomes.
Effective return after fees is simply gross return minus fee.
Fee Drag = PV × (1+r)ᵗ − PV × (1+r−f)ᵗ
PV = initial investment, r = gross annual return, f = annual fee, t = years.
Assumes constant returns and fees. Does not model performance fees, transaction costs, or tax drag. Some higher-fee funds may deliver higher gross returns, though evidence shows most do not over long periods.
Frequently asked questions
Include expense ratios, advisory fees, platform fees, and any recurring charges. Transaction costs and taxes are separate but also reduce returns.
For passive index funds, expense ratios below 0.10% are common. A 1% fee is typical for actively managed funds or financial advisors. The lower the fee, the more of your return you keep.
Only if the fund consistently delivers net-of-fee returns above a cheaper alternative. Research shows the majority of active managers fail to beat their benchmark after fees over long periods.
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