How this calculator works
Two portfolios grow with the same contributions: one at the return before fees, the other at that return minus the expense ratio, with any front-end load taken off each investment. The gap between them is what fees cost you.
Worked example
With the example values below: Ending balance after fees, $330,014 (fees cost $40,584). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Initial investment | $25,000 |
| Monthly contribution | $300 |
| Annual return before fees | 7% |
| Expense ratio | 0.65% |
| Front-end load | 0% |
| Years | 25 yrs |
The fees mutual funds charge
ETFs charge expense ratios too but rarely have loads, so the same math applies to them.
- Expense ratio: an annual percentage of your balance, taken from fund assets. Broad index funds often charge under 0.10%; actively managed funds often 0.5% to 1% or more.
- Front-end load: a sales charge on each purchase, up to about 5.75% on some share classes, reduced at higher investment amounts (breakpoints).
- Back-end load: a charge when you sell, usually declining over several years.
- 12b-1 fees: marketing and distribution fees of up to 1% a year, included in the expense ratio.
Why small fees add up
Fees come out every year whether the fund does well or not, and the money paid in fees no longer compounds. On $10,000 plus $500 a month for 30 years at 7%, a 0.05% expense ratio leaves about $654,000, while a 1% ratio leaves about $545,000. The difference, about $110,000, is the cost of the higher fee.
That's why the calculator runs two portfolios side by side: one before fees and one after.
Lowering what you pay
Compare expense ratios on funds with similar holdings; for broad market exposure, low-cost index funds and ETFs are hard to beat. Avoid loads by buying no-load share classes or through platforms that waive them. In a 401(k), check the plan's fund list for index options. Pair this with the investment calculator to see the full projection.
Frequently asked questions
What is a good expense ratio?
Under about 0.20% is low for most index funds and ETFs, and many broad index funds charge 0.10% or less. Actively managed funds often charge 0.5% to 1%, which they need to beat the index by just to break even.
How is an expense ratio charged?
It's deducted from the fund's assets daily, so you never see a bill. It reduces the fund's returns. A 0.5% ratio on a $20,000 balance costs about $100 a year.
What is a front-end load?
A sales charge taken from each purchase before it's invested. A 5% load on $10,000 means only $9,500 is invested. Larger purchases may qualify for reduced loads.
Are ETFs cheaper than mutual funds?
Often, but not always. Index ETFs and index mutual funds from the same company frequently have similar costs. ETFs rarely charge loads and are usually more tax-efficient in taxable accounts.
How much do mutual fund fees cost over time?
On $10,000 plus $500 a month for 30 years at 7%, moving from a 0.05% to a 1% expense ratio costs about $110,000 in lost growth.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.