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Fee drag

Follow two nearly identical paths until deducted fees—and the growth those dollars no longer earn—pull them apart.

3 minutesYou'll need: A balance, monthly deposit, horizon, gross assumed return, and annual feeNothing you type leaves your browser

Working sketchINPUT → RESULT
Two nearly identical paths separate as ongoing costs compound through time.

Starting example. These made-up figures are here to make the calculator readable. Edit any field; this working copy is not saved.

Start here: replace the example figures with yours, read the main result, then change one number at a time to see what matters most.

Before the fee

Expense ratio, advisory fee, or both

30y

The distance between the lines

An ongoing fee of 1.0% creates a modeled ending difference of $152,497 over 30 years.
The difference includes fees actually deducted and the later compounding those dollars no longer receive.
Before fee
$775,033
After fee
$622,536
Direct fees deducted
$72,655$79,841 of later growth no longer earned

After 30 years, the no-fee path is $775,033 and the path with a 1.0% fee is $622,536, a difference of $152,497.

What changes the answer

The percentage looks small because it is quoted for one year. The gap becomes large because the fee is assessed repeatedly on a growing balance, and every deducted dollar leaves the compounding base.

Real costs can stack: a fund expense, an advisory fee, a plan administration fee, and transaction charges may all appear in different places.

These calculators are educational estimates based on the numbers and assumptions you enter. Real results vary, and projections are not guarantees. Nothing here is personalized investment, tax, or legal advice.

See the assumptions behind this estimate

What the calculator assumes

  • The gross return is an effective annual assumption applied through an equivalent monthly rate.
  • The entered annual percentage fee is divided across months and assessed on assets after monthly growth, before the end-of-month deposit.
  • Both paths receive the same deposits; only the modeled ongoing fee differs.

What it leaves out

  • Transaction charges, flat account fees, fund trading costs, taxes, and changing fee schedules are omitted.
  • The calculation uses a smooth hypothetical return and is not an index forecast.

Useful next steps

The modeled annual fee is only one line of a real cost comparison. Check transaction charges, plan administration, taxes, and the fund or adviser disclosure too.

Public resources only. Networthy has no financial relationship with these sources.

An estimate is a starting point. Test the assumption doing the most work, then take the next question in order.

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