Index Fund Expense Ratio Impact Calculator

Compare how low vs high expense ratios impact total returns over time.

Financial Disclaimer

This calculator is for educational purposes only and does not constitute financial advice. Results are estimates based on the inputs provided. Consult a qualified financial advisor before making investment or financial planning decisions.

Inputs

Investment amount ($)

Years invested

Low expense ratio (%)

High expense ratio (%)

Expected gross return (%)

Tab to move between fields

Results

Low-cost fund value ($)

$231,757

High-cost fund value ($)$200,847

Cost of higher fees ($)$30,909

Annual fee difference ($)$385

Fee drag (%)17.01%

CAGR difference (%)0.77%

How to Use This Calculator

Enter your investment amount and the number of years you plan to invest.
Set the expense ratio for the low-cost fund (e.g., 0.03% for a Vanguard index fund) and the high-cost fund (e.g., 0.80% for an actively managed fund).
Input the expected annual return before fees for both funds.
Compare Low-Cost Final Value versus High-Cost Final Value to see the dollar difference.
Review Fee Cost Over Time to understand the cumulative drag — often tens of thousands of dollars on a long-term portfolio.

Ad Placeholder