About the Investment Fee Calculator
An annual investment fee sounds trivial — often around 1% — but it's charged on your entire balance every year and compounds against you. Over decades it can quietly consume a large slice of your returns. This calculator makes that cost concrete by comparing your portfolio with and without the fee.
How it’s calculated
The portfolio is projected twice — once at the gross return, once at the gross return minus the annual fee. The lifetime cost of the fee is the difference in ending balances; the share of wealth lost is that difference as a percent of the no-fee balance.
Example calculation
On $10,000 plus $500/month at an 8% return over 30 years, a 1% annual fee costs roughly $163,000 — about a fifth of the final balance.
Frequently asked questions
Why does 1% cost so much?
Because it's charged on your whole balance every year, not just your gains — and the money it takes would otherwise have compounded. Small percentages become huge sums over long horizons.
How do I pay less?
Low-cost index funds often have expense ratios well under 0.1%. Comparing a fund's expense ratio before you invest is one of the highest-impact things you can do.
Projections are illustrative and assume a constant rate of return; real investments fluctuate and may lose value. Past performance does not guarantee future results. This is not investment advice.