Live scenario calculator
Educational estimates only. Results depend entirely on the inputs and assumptions you choose.
01 — FormulaThe math underneath
Net return = gross annual return − annual fee; compare future values using each net return
Fees are quiet because they skim returns before you feel them. Over decades, the difference between a tiny fee and a heavy fee can become a house-sized number.
02 — Reality checkWhat this does not include
- Does not model taxes, tracking error, advisor value, or changing fee schedules.
- Assumes steady returns and contributions.
- A fee comparison is only one part of investment selection.
How to use it
Run several scenarios: conservative, middle, and optimistic. The wide gap between those outputs is often more useful than any single answer.
03 — ExampleThe fee is small. The lost compounding is not.
Using the default inputs — $50,000 invested, $500 added monthly, 30 years, and a 7% gross return — a 0.05% annual fee produces roughly $1,003,819, while a 1.00% fee produces about $803,386. The modeled gap is roughly $200,433.
The difference is not simply the fees deducted each year. It also includes the growth those deducted dollars never had the chance to earn.
Look for the annual percentage charged inside the fund, not only account fees.
Separate the cost of advice from product costs so the comparison is honest.
Trading costs, taxes, and cash drag can matter even when they are not labeled as an expense ratio.
FAQQuestions about fee drag
Does a higher fee always mean a worse investment?
No. Cost is one factor. Services, strategy, tracking, taxes, and behavior may also matter, but the fee should still be visible and justified.
Why is the gap larger over longer periods?
Because fee deductions reduce both principal and the future growth that principal could have earned.
Does this model include advisor value?
No. It compares fee drag only and does not attempt to value planning, coaching, tax strategy, or other services.
04 — Long-term exampleOne percentage point over 30 years
With $100,000, a smooth 7% gross return, and no contributions, a 1.00% annual fee reduces the modeled net return to 6.00%. The no-fee path reaches about $761,226; the 1.00% fee path reaches about $574,349—a modeled difference of roughly $186,876.
The tool isolates fee drag. It does not claim two real products will have identical gross performance. Compare products with similar objectives and read the actual prospectus, plan disclosure, or shareholder report.
Keep going
This calculator is for education only. It is not financial, investment, tax, legal, or retirement advice.