Fee Drag Calculator

Your expense ratio is a silent tax that compounds against you every year. See the real dollar cost of your fund's fees vs. a low-cost index alternative.

Starting Balance

Monthly Contribution

Investment Horizon

yrs

Expected Gross Annual ReturnBefore any fees

Your Fund's Expense Ratio

Benchmark Expense Ratio0.03% = Vanguard/Fidelity index funds

Account Type

Marginal Tax Rate

Your Fund (0.5% ER)

$1,871,261

12.83% effective return

Benchmark (0.03% ER)

$2,106,093

13.28% effective return

Fee Drag Over Period

$234,832

$234,832 after estimated tax

Fees Paid (Your Fund)

$86,382

vs $5,645 for benchmark

Final Balance Comparison

Your Fund (0.5% ER)

$1,871,261

Benchmark (0.03% ER)

$2,106,093

Year-by-Year Fee Drag

Year	Your Fund	Benchmark	Cumulative Drag
1	$61,231	$61,501	$270
2	$73,576	$74,203	$627
3	$87,146	$88,230	$1,084
4	$102,064	$103,722	$1,658
5	$118,462	$120,831	$2,369
10	$228,343	$237,197	$8,854
15	$404,704	$428,370	$23,666
20	$687,765	$742,440	$54,676
25	$1,142,080	$1,258,416	$116,336
30	$1,871,261	$2,106,093	$234,832

A 0.47% difference in expense ratio costs you $234,832 over 30 years. Expense ratios are deducted from fund assets daily. They compound silently and permanently against your returns.