Time horizonHigh modeled impact
Higher input raises the modeled result
More years give recurring fee drag longer to compound.
Invest · Long-term fee comparison
Investment Fee Impact Calculator
Compare a no-fee portfolio with an after-fee portfolio and see how a small recurring percentage drag can grow into a large long-term wealth gap.
Deterministic calculation Monthly compounding model
Your result
Difference in ending wealth
$116,157
The modeled gap created by the recurring fee drag and the compounding growth that money no longer earns.
Ending portfolio — no fee$660,849
Ending portfolio — after fee$544,691
Reduction in ending wealth17.58%
Total contributions$190,000
Modeled growth after fee$354,691
Return used after fee6.00%
A 1.00% annual fee drag leaves this scenario with about $116,157 less after 30 years.
Visual comparison
No fee vs. after fee
Gap at 10 years$6,052
Gap halfway through$15,721
Gap at the end$116,157
Through the Lens
What drives this result?
Controlled, deterministic sensitivity around your current inputs reveals which assumptions move the ending-wealth gap most.
Gross returnHigh modeled impact
Higher input raises the modeled result
Return affects both paths and changes how much foregone growth compounds.
Annual feeHigh modeled impact
Higher input raises the modeled result
The fee reduces the modeled annual return before compounding.
Monthly contributionHigh modeled impact
Higher input raises the modeled result
Recurring contributions increase the balance exposed to the fee drag.
Starting investmentLow modeled impact
Higher input raises the modeled result
More starting capital is exposed for the full horizon.
High modeled impact means an input changes this output substantially around the current scenario. Rankings compare controlled 10% input changes; they do not measure risk, probability, personal importance, controllability, suitability, advice, or forecasts.
Meaning
What this means
The percentage looks small. The compounding gap may not.
The difference in ending wealth is not simply the fee percentage multiplied by your contributions. Each modeled fee drag also leaves less money invested to earn future returns. Over a long horizon, that lost compounding can become a large part of the gap.
Implication: compare fees in both percentage terms and long-term dollar terms. A higher-fee investment may still be worthwhile in some situations, but the added value needs to overcome its higher cost.
Read the result carefully
- No fee uses the gross return you enter.
- After fee uses gross return minus the annual fee.
- Wealth difference combines fee drag and foregone growth.
- Modeled growth is the after-fee ending value minus total contributions.
Methodology
How the calculator works
After-fee annual return
gross annual return − annual feeEquivalent monthly rate
(1 + annual return)1/12 − 1Monthly balance
prior balance × (1 + monthly rate) + monthly contributionPercentage reduction
(no-fee ending value − after-fee ending value) ÷ no-fee ending value × 100Monthly contributions are added at the end of each month. The same contribution schedule is used in both scenarios.
Guardrails
Assumptions and limitations
- The return is an assumed constant annualized rate.
- The fee is modeled as a constant annual percentage drag.
- Actual market returns vary and may include losses.
- Taxes, trading costs, fund distributions, contribution timing differences, and other expenses are excluded.
- All dollar inputs should use the same currency.
Educational scenario—not a forecast.
The result illustrates how assumptions compound. It is not investment advice and does not predict a portfolio’s future value.
Known-answer checks
Examples used to validate the engine
Zero-fee identityAt 0% fee, both ending values and the wealth gap are identical / zero.
Known 10-year lump sum$10,000 at 7% reaches $19,671.51; at 6% it reaches $17,908.48.
30-year contribution case$10,000 + $500 monthly at 7% / 1% produces a $116,157.45 modeled gap.
Monotonic checksHigher fees and longer horizons increase cumulative fee impact for the positive-return test case.
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