Investment calculator with fees

An investment calculator with fees shows why 1% a year does not cost 1%: the fee hits a growing balance every year, and it also removes the growth those deductions would have produced.

The calculator

Starting balance ($)

Annual contribution ($)

Years

Gross return (%)

Total annual fees (%)

Flat subscription to compare ($/yr)

With no fee$3,036,593After 30 years

With 1.00% a year$2,344,787Net compounding at 5.93%

Cost of the fee$691,80622.8% of the fee-free result

Flat subscription instead$3,960$132 a year for 30 years, paid from income

Over 30 years, a 1.00% annual fee removes $691,806 — 22.8% of what the same portfolio would have reached with no fee. In year one alone the percentage fee costs $2,500, against $132 for the flat subscription.

Figures are nominal. Enter a real return for today's dollars.

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Why the number is so large

The fee is taken from the whole balance every year, and the money taken would have kept compounding. That is why 1% often costs a quarter or more of the final balance — the full study. Type your own balance into this investment calculator with fees to see the gap in dollars.

Flat fee vs a percentage

A percentage fee grows as you succeed. A flat fee does not. With the figures above, the percentage costs $2,500 in year one and more every year after; the flat subscription totals $3,960 over 30 years. See AUM fee.

Frequently asked questions

What is an investment calculator with fees?

A tool that compounds a portfolio with and without an annual percentage fee so you see the dollar gap, not just the 1% headline. This one also compares that drag to a flat subscription.

How much does a 1% fee actually cost?

Far more than 1%. The fee is charged every year on a growing balance, and it also removes the compound growth those deductions would have produced. Over a few decades that typically amounts to a large share of the final balance.

Does this include fund expense ratios?

Enter the total annual cost — advisory fee plus fund expense ratios plus platform fees. It is the total that determines the drag.

What fees actually remove Try the live demo Start a 5-day free trial