Investment Fee Calculator

An expense ratio is charged every year on the assets you hold, whether the market rises or falls. The calculator runs two identical portfolios side by side: one keeps the full gross return, the other pays the expense ratio on its post-growth balance each year. The difference at the end is the fee drag, and the total of all annual charges is what you actually paid.

Fees look deceptively small because they are quoted as a percentage rather than a dollar amount, and because they compound in reverse. A fraction of a percent removed annually also removes every bit of growth that fraction would have earned afterwards, so the drag grows faster than the fee rate suggests. Longer horizons and higher balances make the gap wider, not narrower.

Two practical checks follow. First, compare funds with similar exposure on expense ratio alone — identical portfolios with different fees rank identically before costs. Second, remember the net return is roughly gross return minus expense ratio: if that figure is not positive, the fee has consumed the entire expected gain.

Compound Interest Formula

Assumptions

• Interest compounds monthly (n=12)
• Contributions made at end of each month
• Rate remains constant over entire period
• No taxes or fees deducted

This calculator provides estimates only. Actual investment returns vary and may result in loss of principal.