Investment Fee Calculator
See how much expense ratios and advisor fees cost over 10, 20 and 30 years. A 1% fee can cut a 30-year portfolio by about 20%. Compare your fees with a low-cost index fund.
Calculator
Key Takeaways
What You Should Know
- Fees come out of your return every year, so their cost compounds. Over 30 years, a 1% all-in fee leaves about 20% less money than a 0.05% index fund.
- In 2025 the average actively managed equity mutual fund charged 0.64%, versus 0.05% for index equity mutual funds and 0.14% for index equity ETFs (ICI, asset-weighted).
- An advisor’s 1% AUM fee sits on top of fund expenses. Add both to see your real cost.
How it works
Calculation methodology
Short answer: every 1% of annual fees takes roughly 1% off your yearly return, and over decades that compounds into a fifth or more of your ending balance. Use the calculator to compare your current fund and advisor fees with a low-cost index fund. The difference is money that stays invested in your account instead of going to fees.
What fees cost: $100,000 plus $1,000 a month for 30 years
| All-in annual fee | Typical example | Balance after 30 years (7% gross) | Lost to fees vs. 0.05% |
|---|---|---|---|
| 0.05% | Broad index mutual fund | $2,007,638 | — |
| 0.14% | Average index equity ETF | $1,965,254 | $42,384 |
| 0.64% | Average active equity mutual fund | $1,747,124 | $260,514 |
| 1.00% | Advisor or high-cost fund | $1,606,773 | $400,866 |
| 1.64% | 1% advisor + average active fund | $1,387,416 | $620,222 |
Expense ratio averages: ICI, 2025 data. Balances are calculated with monthly compounding and assume the same 7% gross return for every portfolio.
How the math works
Net annual return = gross return − fund expense ratio − advisor fee
Future value = balance × (1 + r/12)^n + monthly contribution × [(1 + r/12)^n − 1] ÷ (r/12)
Here r is the net annual return and n is the number of months. The “cost of fees” is the difference between the low-cost result and yours. It includes both the fees paid and the growth those fees would have earned.
Where fees hide
- Fund expense ratio: charged inside the fund and deducted from its daily value. You never see a bill.
- Advisor AUM fee: often 0.5%–1.5% a year, billed quarterly from the account.
- 401(k) plan fees: recordkeeping and administration, disclosed in the plan’s annual fee notice.
- Loads and 12b-1 fees: sales charges on some mutual funds.
- Trading costs and cash drag: not in the expense ratio, but they reduce returns.
Three ways to cut fees without changing your strategy
- Swap to an index equivalent. Replacing a 0.64% active fund with a 0.05% index fund in the same asset class saves 0.59% a year. In a 401(k), look for the plan’s index options or target-date index series.
- Check your advisor’s total cost. Add the advisor fee and the funds’ expense ratios, then compare with a flat-fee planner.
- Consolidate old accounts. Rolling small 401(k)s from former employers into a low-cost IRA or your current plan can remove duplicate account fees.
For more on the long-run effect, read How a 1% Fee Destroys a Portfolio, or project your own growth with the Compound Interest Calculator.
Questions
Frequently Asked Questions
Assumptions
What this example assumes
- Fees are deducted from the gross annual return each year (net return = gross return − expense ratio − advisor fee).
- Monthly contributions and monthly compounding; the same gross return for both portfolios.
- Ignores taxes, trading costs, loads and account fees, which add to the gap.
Sources
Data sources
These sources support the inputs and assumptions used by this calculator. They are not personalized financial advice.
- ICI — Trends in the Expenses and Fees of Funds, 2025
Asset-weighted average expense ratios: actively managed equity mutual funds 0.64%, index equity mutual funds 0.05%, target date mutual funds 0.27%.
- ICI — Mutual fund and ETF fees remained near historic lows in 2025
Equity mutual funds 0.40%, bond mutual funds 0.36%, index equity ETFs 0.14%.