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When you invest in a mutual fund for your retirement, you incur an expense ratio—a fee paid to the firm managing the fund. Expense ratios typically range between 0.15% and 1% or more. While it may seem like a small difference, these fees compound over time, and this calculator helps you see the impact.
Dinkytown’s Investment Fees calculator allows you to compare the expense ratios of up to three funds at once. By entering your balance, regular contributions, and fees, you can visualize how your balance grows over time based on different fee structures.
For example, the chart illustrates the performance of a $100,000 investment over the years with three different expense ratios: 0.10%, 0.20%, and 1.5%. Here are the 20-year returns for each expense ratio:
1.5% expense ratio: $291,776
0.20% expense ratio: $372,756
0.10% expense ratio: $379,799
Even a small increase of 0.10% in fees can have a significant impact over time. If you're unsure about your investment fees, you can use tools like FeeX or Personal Capital to check your expense ratios. Then, input those numbers into the calculator to see how they accumulate over the years.
