Investment Fee Analyzer

See how expense ratios and fees dramatically impact your long-term returns

Money Lost to Fees
$307,302
21.7% of your potential gains over 30 years
Low Fee Fund (0.03%) $1,414,329
High Fee Fund (1%) $1,107,026
Initial Investment $100,000
Total Contributions $280,000
Fee Difference 0.97% per year
Wealth Lost to Fees $307,302

Portfolio Growth Comparison

Final Value Comparison

Understanding Investment Fees

Investment fees may seem small, but they compound over time and can significantly erode your long-term wealth.

The Fee Drag Effect

Fees don't just reduce your returns by their stated percentage - they compound against you year after year.

  • A 1% annual fee can reduce your 30-year returns by 25% or more.
  • Fees come directly out of your investment gains.
  • The longer your investment horizon, the more fees hurt you.
  • Even 'small' fee differences of 0.5% add up to substantial amounts.

Common Fee Types

Understanding the different types of investment fees helps you identify and minimize them.

  • Expense Ratio: The annual fee charged by funds (0.03% to 2%+).
  • Front-End Load: Sales charge when buying (up to 5.75%).
  • 12b-1 Fees: Marketing and distribution fees (0.25% to 1%).
  • Advisory Fees: Fees for financial advisors (0.5% to 1.5%).

Low-Cost Alternatives

Index funds and ETFs offer broad market exposure at a fraction of the cost of actively managed funds.

  • Total market index funds: 0.03% to 0.10% expense ratios.
  • Target date funds: 0.10% to 0.15% for hands-off retirement saving.
  • Most active funds fail to beat their benchmark after fees.
  • Robo-advisors offer diversified portfolios for 0.25% or less.