Investment Fee Impact Calculator — $100.000 at 7% with 0.75% Fee
Compare investment returns with and without fees. See the true cost of management fees.
Inputs
$
Initial investment amount
7.00%
0.00%20.00%
Expected annual return before fees
0.75%
0.00%3.00%
Annual management fee percentage
30
150
Investment time horizon
With Fee
$648,917
Without Fee
$811,650
Total Cost of Fees
$162,733
Amount lost to fees over time
Fee Strategies
- Benchmark with index funds: Compare your current fund’s fee against a broad-market index ETF. Use the compare toggle to map the long-term cost of sticking with the higher-fee option.
- Account for advice costs: If you pay advisory fees in addition to fund expenses, combine them in the management fee field to see your true net return.
- Plan transitions carefully: Before switching investments, estimate taxes or trading costs. Combine this analysis with the Break-Even Horizon Calculator to decide when a change pays off.
Frequently Asked Questions
How do management fees affect my returns?
Management fees are deducted from your investment returns, reducing your net return. Over time, even small fee differences can compound into significant cost differences.
What is a reasonable management fee?
For index funds, fees typically range from 0.03% to 0.25%. Actively managed funds often charge 0.5% to 1.5% or more. Lower fees generally lead to better long-term returns.
Should I choose a fund with lower fees?
Generally yes, especially for similar investment strategies. Lower fees mean more of your returns stay in your pocket. However, consider the fund's performance, strategy, and your investment goals.