Investment Fee Impact Calculator
How much a fund’s expense ratio actually costs you over decades, versus a lower-fee alternative.
Every calculation runs locally in your browser. Assumes both funds earn the same gross return before fees — a simplification, since actual fund performance varies for many other reasons too.
Low-fee ending balance
$321,564
High-fee ending balance
$261,129
Cost of the higher fee
$60,435
Lost to fees over the full time horizon
For informational and educational purposes only — not financial, investment, or tax advice, and not a substitute for consulting a qualified professional about your specific situation. TrueMeasureKit is not liable for decisions made based on these results. See our Terms of Service.
Why a 1% fee costs far more than 1% of your money
An expense ratio isn't a one-time charge — it's deducted every single year, including from the returns that fee has already reduced in prior years. That compounding is exactly why a seemingly small gap like 0.95 percentage points can erode a meaningful share of a portfolio's total growth over several decades: the fee doesn't just take a slice of your contributions, it takes a slice of all the growth those contributions would otherwise have generated.
Frequently asked questions
Why does a 1% fee difference matter so much over decades?
Fees compound against you the same way returns compound for you — a fee taken every year reduces the base that future growth builds on, so the gap between a low-fee and high-fee fund widens dramatically over long horizons.
What's a typical expense ratio for index funds versus active funds?
Broad-market index funds commonly charge 0.03–0.20% annually. Actively managed mutual funds commonly charge 0.5–1.5% or more. This calculator lets you compare any two rates directly against your own investment amount and timeline.