Fee calculator
See how much a fund’s expense ratio or an adviser’s yearly fee would take from a balance over the years.
The result
After 30 years, $10,000.00 would grow to $57,434.91 with no fee and to $42,484.63 with a 1% yearly fee.
The fee would cost $14,950.29, 26.03% of the balance without it.
How it is worked out
Without the fee: B = P × (1 + r)t; with it: B = P × [(1 + r) × (1 − f)]t
- B
- the balance
- P
- the amount invested
- r
- the yearly rate as a decimal (6% is 0.06)
- f
- the yearly fee as a decimal (1% is 0.01)
- t
- the number of years
The fee is taken from the balance once a year, after that year’s return. Taxes are left out.
Illustration, not a forecast. Not investment advice.