How much do fees cost you?
Compare the same starting balance and contributions at two different fee levels. The gap is fee drag — money you lose to costs, not to the market.
10 / 20 / 30-year comparison
Same inputs, three time horizons — showing how the gap widens the longer money compounds.
| Years | Fee A ending value | Fee B ending value | Difference |
|---|
How to read this number
Both columns start from the same balance, the same contributions, and the same gross market return — the only thing that differs is the fee. The dollar difference is what the higher fee cost you in compounded growth, not in a single year, but over the whole period. Fees look small annually and large only in hindsight, which is exactly why they're easy to underweight.
Formula & assumptions
Common questions
What is fee drag on investments?
Fee drag is the reduction in your investment's compounded growth caused by ongoing fees, such as a fund's expense ratio, compared to a lower-fee alternative earning the same gross return.
How much difference can 0.75% in fees make over time?
Because fees compound alongside returns, even a fraction of a percent can subtract a meaningful share of the ending balance over multi-decade periods. The exact amount depends on the starting balance, contributions, gross return, and time horizon.
Is a 1% fee a lot for an investment fund?
It depends on what you are comparing it to. Many low-cost index funds charge a small fraction of 1%, so a 1% fee is high relative to that benchmark, though it may be typical for actively managed funds.
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