Fee Drag Calculator
See how expense ratios silently erode your wealth over time.
Investment
$
$
%
years
Expense Ratios
%
%
Without Fees$1,349,2580.00% TER
Fund A (0.03%)$1,339,627-$9,631 drag
Fund B (0.50%)$1,197,757-$151,501 drag
Cost of Choosing B over A$141,870
Over 30 years, the 0.47% difference compounds into $141,870 of lost wealth.
Key Insight
A 0.50% fee difference on a $100,000 portfolio with $500/mo contributions over 30 years costs you approximately $100,000+ in lost wealth. Always compare TERs before investing.
Year-by-Year Impact
| Year | No Fees | Fund A | Fund B | Difference |
|---|---|---|---|---|
| 5 | $176,054 | $175,831 | $172,362 | $3,469 |
| 10 | $282,725 | $282,039 | $271,504 | $10,535 |
| 15 | $432,335 | $430,792 | $407,336 | $23,456 |
| 20 | $642,171 | $639,134 | $593,439 | $45,695 |
| 25 | $936,478 | $930,935 | $848,416 | $82,519 |
| 30 | $1,349,258 | $1,339,627 | $1,197,757 | $141,870 |
Methodology
Fee drag is calculated by reducing the gross return by each fund's expense ratio, then compounding monthly contributions at the net return rate. This models the real cost of higher fees over time. The difference grows non-linearly due to compounding — a seemingly small 0.10% difference compounds into significant wealth destruction over decades.