Fee Impact Calculator
Written by Greg, founder of FTMarketWatch — a former licensed commodities trader, self-directed investor since. Not a licensed financial advisor.
What this tool does: shows how different annual fee levels (such as mutual
fund MERs or ETF expenses) can change your long-term results when everything else –
contributions and gross return – is the same.
Enter your assumptions
This calculator is for educational illustration only and uses simplified assumptions. Actual
returns and fee structures vary.
Results
Low-fee portfolio (after fees)
$0
Estimated future value with the low annual fee.
High-fee portfolio (after fees)
$0
Estimated future value with the high annual fee.
Estimated cost of higher fees
$0
Difference between low- and high-fee outcomes.
| Year |
Low-fee balance |
High-fee balance |
Difference |
Calculation method: monthly contributions with monthly compounding. The gross annual return
is reduced by each fee level to get an effective annual rate, which is then divided by 12 for
the monthly rate. Real-world results will differ.
How to use this insight
Even relatively small differences in fees can add up over decades. This is one reason why
many long-term investors pay close attention to the costs of mutual funds and ETFs, as
discussed in our ETF Basics and
Mutual Funds guides.
The goal is not to chase the lowest fee at all costs, but to make sure that the fees you pay
are reasonable for the strategy you are using and the value you are getting.
