Free Expense Ratio Impact Calculator
See how fund expense ratios erode your investment returns over time and compare low-cost vs high-cost funds.
USD
%
%
%
years
Low-Cost Fund Value
$992,383
High-Cost Fund Value$761,226
Amount Lost to Fees$231,158
Percentage Lost to Fees2,294.0 %
Low-Cost Fund Value vs Investment Period
The Hidden Cost of Expense Ratios
Expense ratios are annual fees charged by mutual funds and ETFs, expressed as a percentage of assets.
How Fees Compound Against You
Net Return = Gross Return - Expense Ratio
A 1% difference in fees may seem small, but over 30 years it can consume 25%+ of your wealth.
Typical Expense Ratios
Example Calculation
$100,000 invested for 30 years at 8% gross return. Compare 0.05% vs 1.0% expense ratio.
- 01Low-cost net return = 8% - 0.05% = 7.95%
- 02High-cost net return = 8% - 1.0% = 7.0%
- 03Low-cost: $100,000 x (1.0795)^30 = $978,000
- 04High-cost: $100,000 x (1.07)^30 = $761,000
- 05Difference = $217,000 lost to fees
Frequently Asked Questions
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