Investment Fee Calculator

An annual fee reduces your return every year, and the cost compounds into a much larger gap over decades.

Quick answer

An annual fee reduces your return every year, and the cost compounds into a much larger gap over decades. With the default inputs (Initial investment $50,000, Monthly contribution $500, Annual return 7%, Annual fee 0.75%, Years 25) the result is Without fee $691,307, With fee $597,708, Fee impact $93,598.

Method

The projection compounds your initial investment and monthly contributions at the annual return, once without a fee and once at (annual return - annual fee). Fee impact = value without fee - value with fee.

The fee is modelled as a straight reduction of the annual return rate, which is how an ongoing percentage fund fee behaves in practice.

Worked example

Initial investment	$50,000
Monthly contribution	$500
Annual return	7%
Annual fee	0.75%
Years	25
Without fee	$691,307
With fee	$597,708
Fee impact	$93,598

Assumptions and limits

Assumes a constant return every year; actual returns vary.
Only one ongoing percentage fee is modelled; trading commissions, load fees and taxes are not included.

Educational estimate only. It is not financial, tax, legal, or investment advice.

FAQ

How much do investment fees cost over time?

Because fees reduce the rate that compounds, the gap widens each year. With the defaults (0.75%% fee over 25 years) the fee impact is $93,598.

How is the with-fee value calculated?

The same contributions are compounded at the annual return minus the annual fee. With the defaults the value with fee is $597,708 versus $691,307 without it.

What fee should I enter?

Use the fund's ongoing charge or expense ratio plus any advisory fee, as a yearly percentage.

Does it include taxes or trading costs?

No. Only the ongoing percentage fee is modelled.

Is my data stored?

No. The calculation runs in your browser and the inputs are not sent to or saved by this site.