Investment Fee Impact Calculator
Fees are the one cost you can control. See how 0.10% vs 1.00% changes your portfolio over 10, 20, and 30 years.
Result
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The formula
Each year, the portfolio grows by (return − fee), then your contribution is added. This runs for N years:
FV = P × (1 + r − f)n + C × [((1 + r − f)n − 1) ÷ (r − f)]
Where P = initial investment, r = annual return, f = annual fee, n = years, C = annual contribution.
Worked example
- $10,000 initial, 7% return, 0.10% fee, 20 years, $1,000/year
- Effective rate = 7% − 0.10% = 6.90%. FV = 10,000 × (1.069)20 + 1,000 × [(1.06920 − 1) ÷ 0.069] = 10,000 × 3.94 + 1,000 × 40.6 = $79,960.
- Same inputs, 1.00% fee
- Effective rate = 7% − 1.00% = 6.00%. FV = 10,000 × (1.06)20 + 1,000 × [(1.0620 − 1) ÷ 0.06] = 10,000 × 3.21 + 1,000 × 36.79 = $68,890.
- Cost of the extra 0.90% in fees
- $79,960 − $68,890 = $11,070 lost over 20 years. That is roughly 14% of your final portfolio, paid purely for the privilege of paying higher fees.
This calculator compares two fee levels on the same inputs. It does not account for tax, market volatility, or the risk of the assumed return. The 7% figure is a long-run average, not a guarantee.