Investment fee calculator: see what fees cost you over the years
A 1% fee sounds small, and fund fees don’t show up as a charge on your statement, so they’re easy to overlook. But a fee is taken every year from everything you’ve invested, and money taken can no longer grow. Over decades, the difference between a higher and a lower fee can add up to a meaningful share of your savings.
Investment fee calculator
- Difference in final balance
- –
- Balance with option A fees
- –
- Balance with option B fees
- –
- Option A fees’ share of what you’d have with no fees
Fees are deducted from the return every year, so money lost to fees also stops compounding. Contributions are added at the end of each year. Assumes a steady return; real returns vary. Taxes are not included. Everything here runs in your browser; nothing you enter is stored or sent.
What this calculator can help you understand
- How much two fee levels change your final balance over the same period.
- What a fee costs in dollars, compared with paying no fees at all.
- Why small percentages add up, because fees compound like returns do, in reverse.
When it’s useful
- When choosing between funds with different expense ratios.
- When considering an advisor who charges a percentage of your balance.
- When reviewing your 401(k) or IRA investment options.
- When moving money between providers.
Who it’s for
- Long-term investors in mutual funds and ETFs.
- People working with, or considering, a financial advisor.
- 401(k) participants comparing their plan’s options.
What to enter
| Input | What it means | Where to find it |
|---|---|---|
| Amount invested now | Your current balance | Your account statement |
| You add per year | Yearly contributions | Your plan |
| Return before fees | An assumed average return before costs | An assumption |
| Yearly fees, option A | Total yearly costs as a percent | Fund and advisory documents |
| Yearly fees, option B | A lower or alternative fee to compare | Another fund or provider |
| Years | How long you’ll stay invested | Your timeline |
How to use it
- Enter your current balance and what you add each year.
- Enter an assumed return before fees.
- Enter the total yearly fees for the two options you’re comparing.
- Enter the number of years.
- Read the difference in final balance first, then each balance.
- Try your actual fees against a lower-cost alternative.
Understanding your results
- Each balance grows at the return minus that option’s fee each year, with contributions added at the end of each year.
- Difference in final balance is what the higher fee costs you over the period.
- Fees’ share of what you’d have with no fees compares option A with the same investments at zero cost.
A worked example
Suppose you have $100,000 invested, add $10,000 a year, and assume 6% returns before fees (an assumption) for 25 years. You compare 1.00% in yearly fees with 0.10%.
- First year: 1% is about $1,000 on your starting balance; 0.10% is about $100.
- After 25 years: $960,159 with 0.10% fees versus $815,906 with 1.00%.
- The difference: $144,253, out of $350,000 that you contributed.
- Compared with no fees: the 1% fee takes 16.6% of the $977,832 you’d otherwise have; 0.10% takes 1.8%.
How the result changes
The same savings at different fee levels after 25 years:
| Yearly fees | Final balance | Cost compared with no fees |
|---|---|---|
| 0.05% | $968,952 | $8,880 |
| 0.25% | $934,297 | $43,535 |
| 0.50% | $892,865 | $84,967 |
| 1.00% | $815,906 | $161,926 |
| 1.50% | $746,196 | $231,637 |
The cost grows faster than the fee because each year’s fee also removes the growth that money would have earned.
Common mistakes
- Looking only at the expense ratio. Advisory and account fees add to it.
- Comparing fees without comparing what you get. A fee may include services you value; know what you’re paying for.
- Assuming fees are small because they’re invisible. Fund fees are deducted inside the fund, not billed.
- Using a high return assumption. Fees take a larger share when returns are lower.
What to do with your result
- Find the expense ratios and fees for what you hold now.
- Compare alternatives with similar investments at lower cost.
- See how fees affect your retirement plan with the retirement calculator.
Limitations to keep in mind
The calculator assumes a constant return, constant fees and contributions at the end of each year. Real returns vary, and fees can change. It doesn’t include taxes, trading costs or one-time fees. It isn’t investment advice or a recommendation of any product.
Frequently asked questions
What is an expense ratio?
It’s the yearly cost of owning a mutual fund or ETF, expressed as a percentage of your investment. It’s taken from the fund’s returns before you see them, so it never appears as a separate charge. You’ll find it in the fund’s prospectus or fact sheet.
Which fees should I include?
Add up the ongoing yearly costs as a percentage: fund expense ratios plus any advisory, platform or account fees charged as a percent of your balance. One-time costs, like trading commissions, aren’t included here.
Is a 1% fee really that much?
Over long periods, yes. In our example, a 1% yearly fee reduces the final balance by $161,926 compared with no fees, 16.6% of what you’d otherwise have.
Are higher fees ever worth it?
Sometimes, if they pay for advice or services you value. The point isn’t that fees are always bad, but to know what they cost in dollars so you can judge whether you’re getting that value.
Where can I find what I pay?
Fund prospectuses list expense ratios; advisory agreements and account statements list advisory fees; 401(k) plans provide fee disclosures. The SEC’s Investor.gov site has tools for understanding investment fees.
Does the calculation include taxes?
No. Taxes depend on your account type and situation and would affect both options.
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This calculator gives estimates for illustration, based on the figures you enter and the assumptions described on this page. It isn’t financial, tax or legal advice, an offer, or a guarantee of any outcome.