Investment Fee Analyzer
See how even small differences in fees can cost you hundreds of thousands of dollars
Compare Fund Fees
Funds to Compare
High fees cost you $367,370 over 30 years!
That's money lost to management fees instead of growing in your portfolio.
Index Fund (VTI)
Expense ratio: 0.03%
$1,319,648
Growth: $1,129,648
Active Fund A
Expense ratio: 0.75%
$1,123,156
Growth: $933,156
Lost to fees vs Index Fund (VTI): $196,492
Active Fund B
Expense ratio: 1.5%
$952,278
Growth: $762,278
Lost to fees vs Index Fund (VTI): $367,370
Understanding Investment Fees
Investment fees are the silent killer of portfolio returns. While a difference of 0.5% or 1% may seem trivial, the compounding effect over decades means you could be giving up hundreds of thousands of dollars in potential wealth.
Types of Investment Fees
Expense Ratio (Management Fee)
Annual fee charged as a percentage of assets. Index funds: 0.03-0.20%. Active funds: 0.50-2.00%.
Trading Commissions
Fee per trade. Most major brokerages now offer $0 commission trades for stocks and ETFs.
Load Fees (Sales Charges)
Front-end or back-end charges on mutual funds. Avoid these — choose no-load index funds instead.
12b-1 Fees (Marketing Fees)
Annual marketing and distribution fees. Included in the expense ratio. Not present in most index funds.
Why Index Funds Win on Fees
| Fund Type | Avg Expense Ratio | Annual Cost on $100K |
|---|---|---|
| Index ETFs | 0.03% - 0.10% | $30 - $100 |
| Index Mutual Funds | 0.05% - 0.20% | $50 - $200 |
| Active Mutual Funds | 0.50% - 1.50% | $500 - $1,500 |
| Hedge Funds | 1.50% - 2.00%+ | $1,500 - $2,000+ |
The 1% Rule
Every 1% in fees reduces your final portfolio by approximately 25-28% over 30 years. This is why Warren Buffett recommends low-cost index funds for most investors — you keep more of the market's returns.