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What investment fees cost you over time

Enter your investment, its gross return and the yearly fees. The calculator shows the balance with and without fees, how much they take in dollars and what a cheaper option would leave you.

Educational simulation. Not investment advice. Results are estimates based on the data you enter and do not replace advice from a qualified professional.

Reviewed on Nov 1, 2026

Example: a fund charging 1% a year compared with an index fund charging 0.1%, both with the same gross return.

The investment
Fees charged

Fees and taxes depend on the product and the provider: check the fund’s prospectus, fee table or account agreement.

Comparison

Add up all yearly fees of the other option, such as an index fund or ETF.

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—What the fees take over the period
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Balance with and without fees

Same contributions and same gross return. The bars show how much the fees have taken by each year.

Tap the chart to see the values.

What each fee level costs

Gap in the final balance against the same investment with no fees, for yearly fees from 0.25% to 3%.

Tap the chart to see the values.

Year by year

Next step

Take this page’s results to another calculator with the fields already filled in.

Open in the compound interest calculator, with the fees →

The summary lists your inputs, results, formulas, assumptions and sources. The full report also includes the charts and interpretations, in color. In the print dialog, choose Save as PDF.

Method, assumptions and sources

Formulas

Net return = (1 + gross return) × (1 − management fee − custody fee) − 1
Monthly rate: i = (1 + yearly rate)^(1/12) − 1; monthly balance: B(m) = B(m−1) × (1 + i) + contribution (month end)
Tax at withdrawal = tax rate × (balance − total put in)
Cost of fees = balance without fees − balance with fees

Assumptions and limits

  • Same engine as the compound interest calculator (fee impact mode): constant return and fees, monthly compounding and contributions at the end of each month.
  • Yearly fees are charged on the balance, spread over the year. Sales loads, performance fees, trading costs and account minimums are not included.
  • Tax is simplified: one rate on the gain at withdrawal. Fees and rules depend on the product: check the prospectus.

Official sources and references

Frequently asked questions

What is a management fee or expense ratio?

It is the yearly percentage a fund or advisor charges on your balance to run the money. In a fund it is deducted from the fund’s value, so the published return is already net of it. It is charged even in years when the investment loses money.

How do I read the default example?

In the example, $10,000 upfront plus $500 a month for 20 years at a 7% gross return grows to about $292,465 with no fees. With a 1% fee the return drops to 5.93% a year and the balance to $256,602: fees take $35,863, 22.1% of all the gains. The index fund charging 0.1% ends at $288,637, $32,034 more.

Why does a 1% fee cost more than 1% of the result?

Because the fee is charged every year on the whole balance, not on the gain, and the money taken stops compounding until the end. With a 7% gross return, a 1% fee eats about one seventh of each year’s return, and the effect builds up over time.

Where do I find my fees?

In the fund’s prospectus or fact sheet (look for the expense ratio), in your advisor’s agreement, and on your plan or account statements. Add up all yearly fees charged on the balance.

Is the published fund return already after fees?

Fund returns are usually reported after the expense ratio but before your taxes and any separate advisory or account fees. To compare with a cheaper option, use the same gross return and different fees, as on this page.

What does the calculator leave out?

Sales loads, trading costs inside the fund, performance fees, account minimums and fee changes over time. Tax is applied once, at the end, on the gain. Past returns do not guarantee future ones: the calculator keeps every rate constant.

When should I talk to a professional?

Before moving money between funds or retirement accounts, check for surrender charges, taxes on the switch and any employer match you might lose. A fee-only financial planner can help compare options with similar risk.

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Investment fees: what they really cost

Fund expense ratios, advisory fees and account fees are charged every year on your balance. They are usually taken out of the fund’s value, so you never see a bill: you just get a lower return. Because they are charged on the whole balance, not on the gain, they cost far more than the small percentage suggests.

The math

With a 7% gross return and a 1% fee you keep (1.07 × 0.99) − 1 = 5.93% a year. Investing $10,000 plus $500 a month for 20 years, the balance reaches about $292,465 with no fees and $256,602 with the 1% fee: $35,863 less, 22% of all the gains. With an index fund charging 0.1%, the loss shrinks to about $3,828.

When a fee is worth paying

A fee only pays for itself if the manager beats a low-cost option with similar risk by at least that much every year, after costs. Research on actively managed funds shows that most fail to do so over long periods. Compare returns after fees and taxes, and read the fee table in the prospectus.

Other costs

Besides the yearly fee, there may be sales loads, trading costs, performance fees and account fees. This calculator adds up yearly fees charged on the balance; one-time charges and fees on excess returns are not included.