Investment Fee Impact Calculator
See how expense ratios silently erode your wealth over time.
Compare Two Funds
e.g. Vanguard VTI
e.g. Typical active fund
Fee Difference Over 30 Years
$0
That's money you keep
Cost in Years of Work
0
at median US salary
Fund A Final Value
$0
Fees paid: $0
Fund B Final Value
$0
Fees paid: $0
Growth Comparison
Year-by-Year Breakdown
| Year | Fund A Value | Fund B Value | Difference |
|---|
How Investment Fees Compound Over Time
A seemingly small difference in expense ratios can cost you hundreds of thousands of dollars over a 30-year investment horizon. This is because fees compound against you just as returns compound for you.
Understanding Expense Ratios
An expense ratio is the annual fee charged by a mutual fund or ETF, expressed as a percentage of assets under management. For example, a 1% expense ratio on a $100,000 portfolio costs $1,000 per year. But the real cost is much higher because that $1,000 can no longer compound for you.
The 4% Rule Connection
If you're planning for retirement using the 4% safe withdrawal rate, every dollar lost to fees reduces your sustainable annual income. A 1% fee effectively reduces your safe withdrawal rate to approximately 3%, cutting your retirement income by 25%.
What's a Good Expense Ratio?
- Excellent: Under 0.10% (e.g., Vanguard VTI at 0.03%, Fidelity FZROX at 0.00%)
- Good: 0.10% - 0.50%
- Expensive: 0.50% - 1.00%
- Very Expensive: Over 1.00%