Tools · Expense Ratio Impact
Expense ratio impact,
in dollars.
A 1% fee sounds small. Over forty years, it is not. This tool compares two funds with different expense ratios and shows the dollar cost difference over the time horizon you enter.
READING TIME: 2 MIN
VTI is 0.03%. FZROX is 0.00%. Low cost.
Typical actively-managed mutual fund. Some 401(k) plan defaults also carry fees in this range.
FUND A ENDING BALANCE
$0
Net return: 0%
FUND B ENDING BALANCE
$0
Net return: 0%
DIFFERENCE (LOST TO FEES)
$0
0% of Fund A
WHAT THE GAP BUYS
Enter values to see the plain-English explanation.
What this tool assumes
- Expense ratio is deducted from the annual gross return; no additional tax drag modeled.
- Both funds are assumed to track the same underlying; difference is entirely fees.
- Monthly compounding at the net rate divided by 12.
- Contributions are at the end of each month; rate is constant.
Fees compound too. Educational only; not financial advice.