CALCULATOR
Investment Fee Drag Calculator
A 1% annual fee sounds like nothing. Over 30 years, it can cost more than you put in. See the real dollar number.
Not financial advice. Expense ratio is one factor in fund selection - not the only one.
Your Numbers
Vanguard VOO / VTI = 0.03%
Typical active fund = 0.75-1.25%
FEES COST YOU
over 30 years - money that would have been yours
LOW-FEE FUND
HIGH-FEE FUND
Final Value Comparison
Year-by-Year Breakdown
Fees Don't Just Cost You Money - They Cost You Compounding
A 1% fee doesn't reduce your return by 1%. It reduces it by much more. Every dollar paid in fees is a dollar that won't compound for the next 20 years. That's the real cost.
The S&P 500 has returned roughly 10% annually over the long term. Vanguard's VOO tracks it at 0.03%. The average actively managed fund charges 0.60-1.25% and underperforms the index after fees in about 85% of 15-year periods (SPIVA data).
Check your 401(k) plan. Look at the expense ratios on every fund. Switch to the lowest-cost index option available. That single move - taking 10 minutes - may be worth more than years of extra contributions.