Investment Fee Calculator: The Cost of a 1% Fee

A 1% annual fee sounds small – but over decades it can cost a surprisingly large share of your wealth. Compare two funds with different expense ratios and see how much the difference in fees could add up to over time.

Investment Fee Calculator

Starting amount

Monthly contribution

Annual return before fees (%)

Years

Fee A – low cost (%/yr)

e.g. a broad index fund

Fee B – higher cost (%/yr)

e.g. an actively managed fund

Final value with fee A

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Final value with fee B

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Difference

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Year	Fee A	Fee B	Difference

Fees are deducted from the annual return (return minus fee), compounded monthly. Taxes and trading costs are not included.

Why Small Fees Matter

Fees are charged every year on your whole balance, including past growth. Because they reduce the amount that compounds, their effect grows over time. That is why many long-term investors pay close attention to expense ratios. Read more in Index Funds vs. Actively Managed Funds.

Where to Find a Fund’s Fees

The expense ratio is listed on the fund’s fact sheet and prospectus.
Also check trading costs, platform fees, and currency conversion costs from your broker.
For index funds, compare the tracking difference – see how to evaluate an ETF.

Learn More

This calculator is for general educational purposes only. Results are estimates based on the numbers you enter and simplified assumptions; they are not financial, investment, or tax advice. See our Disclaimer.