Fee Drag Over Time
Calculator
Results
- Final balance
- $1,004,063.54
- Cost of the fees
- $295,574.61
- Balance before fees
- $1,299,638.15
- Fees as a share of the gross balance (%)
- 22.742838%
Portfolio value over time
- Portfolio balance
- Money put in
Projection schedule
| 1 | 104,800.00 | 6,302.01 | 6,302.01 | 111,102.01 |
| 2 | 109,600.00 | 6,986.75 | 13,288.76 | 122,888.76 |
| 3 | 114,400.00 | 7,713.73 | 21,002.49 | 135,402.49 |
| 4 | 119,200.00 | 8,485.55 | 29,488.05 | 148,688.05 |
| 5 | 124,000.00 | 9,304.98 | 38,793.03 | 162,793.03 |
| 6 | 128,800.00 | 10,174.94 | 48,967.97 | 177,767.97 |
| 7 | 133,600.00 | 11,098.56 | 60,066.53 | 193,666.53 |
| 8 | 138,400.00 | 12,079.15 | 72,145.69 | 210,545.69 |
| 9 | 143,200.00 | 13,120.22 | 85,265.91 | 228,465.91 |
| 10 | 148,000.00 | 14,225.50 | 99,491.41 | 247,491.41 |
| 11 | 152,800.00 | 15,398.95 | 114,890.37 | 267,690.37 |
| 12 | 157,600.00 | 16,644.78 | 131,535.15 | 289,135.15 |
| 13 | 162,400.00 | 17,967.45 | 149,502.59 | 311,902.59 |
| 14 | 167,200.00 | 19,371.69 | 168,874.29 | 336,074.29 |
| 15 | 172,000.00 | 20,862.55 | 189,736.84 | 361,736.84 |
| 16 | 176,800.00 | 22,445.36 | 212,182.20 | 388,982.20 |
| 17 | 181,600.00 | 24,125.80 | 236,308.00 | 417,908.00 |
| 18 | 186,400.00 | 25,909.88 | 262,217.87 | 448,617.87 |
| 19 | 191,200.00 | 27,803.99 | 290,021.87 | 481,221.87 |
| 20 | 196,000.00 | 29,814.94 | 319,836.81 | 515,836.81 |
| 21 | 200,800.00 | 31,949.91 | 351,786.72 | 552,586.72 |
| 22 | 205,600.00 | 34,216.56 | 386,003.28 | 591,603.28 |
| 23 | 210,400.00 | 36,623.02 | 422,626.30 | 633,026.30 |
| 24 | 215,200.00 | 39,177.90 | 461,804.20 | 677,004.20 |
| 25 | 220,000.00 | 41,890.36 | 503,694.57 | 723,694.57 |
| 26 | 224,800.00 | 44,770.12 | 548,464.69 | 773,264.69 |
| 27 | 229,600.00 | 47,827.50 | 596,292.19 | 825,892.19 |
| 28 | 234,400.00 | 51,073.45 | 647,365.64 | 881,765.64 |
| 29 | 239,200.00 | 54,519.60 | 701,885.24 | 941,085.24 |
| 30 | 244,000.00 | 58,178.30 | 760,063.54 | 1,004,063.54 |
Comparison
| Scenario | Final balance | Total growth |
|---|---|---|
| Doing nothing | 1,299,638.15 | 1,055,638.15 |
| Your plan | 1,004,063.54 | 760,063.54 |
Formula
net rate = gross − fee; cost = FV(gross) − FV(gross − fee)= 295574.61
Note
Returns are not guaranteed and this is not investment advice. This projection applies the displayed standard formula to the rates you entered and assumes they repeat, unchanged, every single period. Real markets do not behave that way: returns vary year to year, can be negative, and past or projected performance never guarantees future results. The model ignores taxes, trading costs, currency effects and any fee you did not enter. Treat the figures as an illustration of the arithmetic, not a forecast, and consult a licensed adviser before acting on any of them.
More in Portfolio growth
See all →Frequently asked questions
Why do fees that sound tiny, like 1% a year, matter so much over decades?+
A 1% annual fee is deducted every year from a compounding balance, so it doesn't just cost you 1% of your final value — it costs you 1% of growth every single year, compounding against you the same way returns compound for you. Over 30 years, a 1% fee can consume a meaningful fraction of your total final balance.
How is fee drag calculated differently from a simple annual cost?+
It's modeled as a reduction to your annual return rate (e.g., an 8% gross return becomes roughly a 7% net return with a 1% fee), then compounded over the full time horizon — the calculator shows the compounding gap between the gross and net-of-fee ending balances, not just the fee paid in any single year.
Does a 1% fee difference really compound into a large gap?+
Yes — because the fee reduces the base that future growth compounds on, the gap between a 1%-fee portfolio and a 0.2%-fee portfolio widens every year, often amounting to a difference of 15-25% or more of the final balance over a 25-30 year horizon, even though the annual fee difference sounds small.
What kinds of fees should I include besides an obvious expense ratio?+
Fund expense ratios are the most visible, but advisory fees, account maintenance fees, and trading costs or bid-ask spreads for frequently traded holdings all add to total fee drag. A comprehensive comparison should add these together rather than looking at just one fee line in isolation.
Is a higher-fee fund ever worth it?+
It can be, if it reliably delivers enough extra return (net of the fee) to offset the drag, though this is hard to predict and few actively managed funds do so consistently after fees over long periods. The calculator is useful for quantifying exactly how much extra performance a higher-fee option needs to produce just to break even with a cheaper alternative.