Investment Fee Impact Calculator
See how investment fees eat into your returns over time. Even small differences compound dramatically.
e.g., Index fund: 0.03-0.20%
e.g., Active fund: 0.5-1.5%
Why Fees Matter
Fees compound against you - Just as returns compound in your favor, fees compound against you. A 1% fee doesn't just cost 1% of your money - it costs 1% plus all the returns that money would have earned.
Look for low-cost index funds - Funds like total market index funds often have expense ratios under 0.10% while actively managed funds average over 0.70%.
Check for hidden fees - Beyond expense ratios, watch for sales loads, 12b-1 fees, transaction fees, and account maintenance fees.
Most active funds underperform - Studies consistently show that most actively managed funds fail to beat their benchmark index after fees.
This calculator provides estimates for educational purposes only.