See how much of a portfolio a fund expense ratio consumes over decades of compounding.
An expense ratio is charged on the whole balance every year, so its cost compounds alongside the portfolio. Over thirty years a 0.75% charge typically consumes around a fifth of the final value, not 0.75% of it. Fees are the only variable in investing you control with certainty, and the years-of-growth figure shows what a seemingly small percentage really costs.
Expense Ratio Impact
Value after fees = principal × (1 + gross return − expense ratio)^years
Value after fees = principal × (1 + gross return − expense ratio)^years An expense ratio is charged on the whole balance every year, so its cost compounds alongside the portfolio. Over thirty years a 0.75% charge typically consumes around a fifth of the final value, not 0.75% of it.
Fees are the only variable in investing you control with certainty, and the years-of-growth figure shows what a seemingly small percentage really costs.
This calculator takes 4 inputs: Amount invested, Gross annual return, Annual expense ratio, Years held. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.