Measure how much expense ratios reduce long-term growth.
An expense ratio is deducted from returns every year, so over decades it compounds into a large drag on final value. Even a one-percent difference in fees can cost a meaningful share of ending wealth. Fees are one of the few investment costs fully within your control, making low-cost index funds a powerful default choice.
Index Fund Fees
With fees = P x (1 + (r - fee))^years
With fees = P x (1 + (r - fee))^years An expense ratio is deducted from returns every year, so over decades it compounds into a large drag on final value. Even a one-percent difference in fees can cost a meaningful share of ending wealth.
Fees are one of the few investment costs fully within your control, making low-cost index funds a powerful default choice.
This calculator takes 4 inputs: Initial balance, Annual return, Years, Expense ratio. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.