Investor Tool

ETF Fee Impact Calculator

Unmask the silent wealth killer. Visualize how small expense ratios compound into massive losses over decades.

Coach Mode

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Decision Inputs

Initial Investment ($)

Monthly Contribution ($)

Expected Gross Return (%)

Expense Ratio (%)

"Every dollar paid in fees is a dollar that doesn't compound for you."

Analysis Result

Analysis Pending

Expense ratios are the only part of your return you can actually control. Enter your ETF details to see the impact.

Supporting Insights

The Destructive Power of Fees

Fees are deducted from your balance regardless of market performance. In a flat or down market, fees actually accelerate your losses.

Passive vs. Active

Most active funds charge 0.50% to 1.50%. Low-cost index ETFs often charge less than 0.10%. Over 30 years, this difference can be worth hundreds of thousands of dollars.

Benchmark Rule-of-Thumb

Generally, any broad-market ETF charging more than 0.20% is considered 'expensive' in the modern brokerage era. Look for 'Core' ETFs that often charge 0.03% to 0.09%.

Risks & Limitations

This tool assumes a constant gross return. Actual returns will vary.
Expense ratios can change over time, though for major ETFs they typically trend downward.
Taxes on dividends and capital gains are not included; these would further reduce net returns.

Next Steps

Search Low-Cost ETFs Learn about Expense Ratios Compare Vanguard vs BlackRock Fees Documentation: Fee Impact

Key Definitions

Expense Ratio: The annual fee that all funds or ETFs charge their shareholders. It is expressed as a percentage of assets.
Net Return: The actual return an investor receives after all fees and expenses are deducted from the gross return.
Annuity Formula: FV = P(1+r)^n + PMT * [((1+r)^n - 1) / r], where P is initial, PMT is monthly contribution, r is monthly rate, and n is months.

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Supporting Insights

The Destructive Power of Fees

Fees are deducted from your balance regardless of market performance. In a flat or down market, fees actually accelerate your losses.

Passive vs. Active

Most active funds charge 0.50% to 1.50%. Low-cost index ETFs often charge less than 0.10%. Over 30 years, this difference can be worth hundreds of thousands of dollars.

Benchmark Rule-of-Thumb

Generally, any broad-market ETF charging more than 0.20% is considered 'expensive' in the modern brokerage era. Look for 'Core' ETFs that often charge 0.03% to 0.09%.

Key Definitions

Expense Ratio

The annual fee that all funds or ETFs charge their shareholders. It is expressed as a percentage of assets.

Net Return

The actual return an investor receives after all fees and expenses are deducted from the gross return.

Annuity Formula

FV = P(1+r)^n + PMT * [((1+r)^n - 1) / r], where P is initial, PMT is monthly contribution, r is monthly rate, and n is months.