Investment Fee Analyzer
See how even small differences in fees can cost you a large share of your portfolio
Compare Fund Fees
Funds to Compare
High fees cost you $367,370.00 over 30 years
That is money lost to management fees instead of growing in your portfolio.
Index Fund (VTI)
Expense ratio: 0.03%
$1,319,648.00
Growth: $1,129,648.00
Active Fund A
Expense ratio: 0.75%
$1,123,156.00
Growth: $933,156.00
Lost to fees vs Index Fund (VTI): $196,492.00
Active Fund B
Expense ratio: 1.50%
$952,278.00
Growth: $762,278.00
Lost to fees vs Index Fund (VTI): $367,370.00
Understanding Investment Fees
Investment fees are the silent killer of portfolio returns. A difference of 0.5% or 1% may seem trivial, but compounded over decades it can cost you a large share of your potential wealth.
Types of Investment Fees
Expense Ratio (Management Fee)
An annual fee charged as a percentage of assets. Index funds: 0.03-0.20%. Active funds: 0.50-2.00%.
Trading Commissions
A fee per trade. Most major brokers now offer commission-free trading for stocks and ETFs.
Load Fees (Sales Charges)
Front-end or back-end charges on mutual funds. Avoid them and choose no-load index funds instead.
12b-1 Fees (Marketing Fees)
Annual marketing and distribution fees, included in the expense ratio. Absent from most index funds.
Why Index Funds Win on Fees
| Fund Type | Avg Expense Ratio | Annual Cost on $100,000.00 |
|---|---|---|
| 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 roughly 25-28% over 30 years. That is why Warren Buffett recommends low-cost index funds for most investors: you keep more of the market's returns.