Investment Fees Calculator

Calculate how investment fees impact your portfolio over time. See the true cost of management fees, expense ratios, and other charges on your wealth.

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Fee Impact Analysis

Calculated
Final Value (With Fees)
$0
Net portfolio value
Value Without Fees
$0
Hypothetical no-fee growth
Total Fees Paid
$0
Lost to fees over time
Effective Annual Fee
0%
Combined fee rate
Fee Drag on Returns
0%
Return reduction
Years of Income Lost
0
At 4% withdrawal rate

Fee Breakdown

Fee Type Total Cost

The True Cost of Fees

Investment fees compound over time, reducing not just your balance but also your future earnings potential.

$0 lost to fees

Key Takeaways

  • A 1% annual fee can cost you over 25% of your total returns over 30 years
  • Fees compound against you - they reduce not just your balance but future growth
  • Low-cost index funds typically charge 0.03-0.20% vs. 1-2% for actively managed funds
  • Advisory fees of 1% on top of fund fees can double your total costs
  • Every dollar saved in fees is a dollar that keeps compounding for you

Understanding Investment Fees

Investment fees are the costs you pay for investing your money. While they may seem small as percentages, they can have a dramatic impact on your long-term wealth. Understanding these fees is crucial for maximizing your investment returns.

Types of Investment Fees

Expense Ratio

Typical: 0.03% - 2.0%

Annual fee charged by mutual funds and ETFs to cover operating costs. Deducted directly from fund returns.

Advisory Fee

Typical: 0.25% - 1.5%

Fee paid to a financial advisor for investment management and advice. Often charged as a percentage of assets.

Transaction Costs

Typical: $0 - $50 per trade

Commissions and fees for buying or selling investments. Many brokers now offer $0 commissions.

Account Fees

Typical: $0 - $150/year

Annual maintenance fees, custodian fees, or inactivity fees charged by brokerages.

How Fees Compound Against You

The true cost of investment fees is often much higher than the stated percentage suggests. This is because fees reduce your investment balance, which then earns less in future returns. This "fee drag" compounds over time.

Effective Return = Gross Return - Total Fee Rate
Example: 7% return - 1% fees = 6% net return
That 1% fee costs you 14% of your total return!

Strategies to Minimize Investment Fees

  • Choose low-cost index funds - Many offer expense ratios under 0.10%
  • Consider robo-advisors - Typically charge 0.25-0.50% vs. 1%+ for human advisors
  • Use commission-free brokerages - Avoid per-trade transaction costs
  • Watch for hidden fees - 12b-1 fees, sales loads, redemption fees
  • Review your statements - Know exactly what you're paying

Fee Comparison: The Long-Term Impact

Consider this example: $100,000 invested for 30 years with a 7% return:

  • 0.10% fees: Final value of $736,000 ($25,000 in fees)
  • 0.50% fees: Final value of $645,000 ($116,000 in fees)
  • 1.00% fees: Final value of $561,000 ($200,000 in fees)
  • 2.00% fees: Final value of $427,000 ($334,000 in fees)

The difference between 0.10% and 2.00% fees is over $300,000 - money that could have funded years of retirement!