Calculator Inputs
Example Data Table
| Initial Investment | Monthly Contribution | Years | Gross Return | Fund A Fee | Fund B Fee | Illustrative Added Cost |
|---|---|---|---|---|---|---|
| $10,000 | $250 | 10 | 7.00% | 0.10% | 0.75% | $2,112.00 |
| $25,000 | $500 | 20 | 8.00% | 0.15% | 1.00% | $18,945.00 |
| $50,000 | $750 | 25 | 9.00% | 0.05% | 1.20% | $58,370.00 |
| $100,000 | $1,000 | 30 | 7.50% | 0.20% | 1.50% | $152,880.00 |
These rows are illustrative examples only. Your live results depend on your chosen assumptions, timing, compounding frequency, and inflation settings.
Formula Used
Net Annual Factor = (1 + Gross Return) / (1 + Expense Ratio)
Periodic Net Return = (Net Annual Factor)^(1 / Periods Per Year) - 1
Ending Balance = (Starting Balance ± Contribution Timing Adjustment) × (1 + Periodic Net Return)
Fee Drag = No-Fee Balance - Actual Fund Balance
Added Cost = Lower-Fee Fund Balance - Higher-Fee Fund Balance
Real Balance = Nominal Balance / (1 + Inflation Rate)^Years
This approach captures more than the raw fee itself. It also reflects the missed compounding that happens after fees reduce the investable balance year after year.
How to Use This Calculator
- Enter your starting portfolio amount in the initial investment field.
- Add your recurring monthly contribution estimate.
- Choose the number of years you expect to stay invested.
- Enter the gross annual return assumption before ongoing fund fees.
- Input two expense ratios to compare two fund choices directly.
- Adjust inflation, contribution growth, compounding, and timing for a more realistic projection.
- Press the calculate button to display results above the form.
- Use the CSV and PDF buttons to save or share the output.
Frequently Asked Questions
1) What is an expense ratio?
An expense ratio is the annual percentage a fund deducts from assets for management and operating costs. Even small percentages can materially reduce long-term ending value.
2) Why do tiny fee differences matter so much?
Fees reduce balance every year, which also reduces future compounding. Over long horizons, a small percentage gap can become a surprisingly large cash difference.
3) Does this calculator include inflation?
Yes. Enter an inflation rate to estimate real purchasing-power values. This helps you compare nominal balances with inflation-adjusted balances more realistically.
4) What does the no-fee balance represent?
The no-fee balance is a reference scenario showing growth without fund expenses. It helps isolate the wealth lost to fees and the compounding lost after those deductions.
5) Can I compare any two funds?
Yes. Enter any two expense ratios in Fund A and Fund B fields. The calculator will show the lower-fee and higher-fee outcomes automatically.
6) Why is contribution timing included?
Money invested at the beginning of a period has more time to compound than money added at the end. Timing can slightly change long-term projections.
7) Is gross return the same as actual investor return?
No. Gross return is the assumed portfolio return before fund expenses. Actual investor return is lower once expense ratios reduce the portfolio each year.
8) Can this replace professional advice?
No. This tool is for educational comparison and planning. Markets, taxes, trading costs, and personal circumstances can change real investment outcomes significantly.