Investment Fee Drag Calculator
Cost of investment fees over time.
Calculate impact of investment fees on portfolio over time. Enter portfolio value and expense ratio to see fees paid over period.
What this tool does
Enter portfolio value, expense ratio, and years. The tool shows fees paid over period.
Enter Values
Formula Used
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Disclaimer
Results are estimates for educational purposes only. They do not constitute financial advice. Consult a qualified professional before making financial decisions.
Investment fees compound dramatically. 1% expense ratio on 100k portfolio over 30 years at 7% gross return: 35k+ in fees vs 0.1% index fund. Compounding effect makes small fee differences enormous over time.
Run it with sensible defaults
Using portfolio value of 100,000, expense ratio of 1%, annual return of 7%, years of 30, the calculation works out to 186,876.39. Nudge the inputs toward your own situation and the output recalculates instantly. The defaults are meant as a starting point, not a recommendation.
The levers in this calculation
The inputs — Portfolio Value, Expense Ratio %, Annual Return, and Years — do not pull with equal force. The rate and the time horizon usually dominate — compounding means a small change in either reshapes the final figure more than a similar shift in contribution size. Test this by doubling one input at a time.
How the math works
Compares portfolio growth with and without expense ratio. Difference = total fee drag. The working is transparent — you can verify every step yourself in the formula section below. No black box, no opaque "proprietary model".
Why investors run this
Most people's intuition for compounding is wrong — not because the math is hard, but because linear thinking doesn't account for curves. Running numbers through a calculator like this one is the cheapest way to recalibrate that intuition before making an irreversible decision about contribution rate, asset mix, or retirement age.
What this doesn't capture
Steady-rate math ignores real-world volatility. Actual returns are lumpy; sequence-of-returns risk matters most in drawdown; fees and taxes drag on compound growth; and behaviour changes in drawdowns can reduce outcomes below the projection. Treat the number as one scenario, not a forecast.
Investment fees produce drag based on the inputs provided.
Inputs
This example uses typical values for illustration. Adjust the inputs above to match a specific situation and see how the result changes.
Sources & Methodology
Methodology
Compares portfolio growth with and without expense ratio. Difference = total fee drag.
References
Frequently Asked Questions
Why so much?
Index funds vs active?
Are fees worth it?
How to reduce?
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