Fee Impact Simulator
A 1% fee sounds small. Over 30 years, it isn't.
Why Fees Are the Silent Wealth Killer
The Math Most People Never See
A fund charging 1% per year doesn't just take 1% of your money. It takes 1% of your money every year, compounded. That 1% grows alongside your portfolio — the bigger your account gets, the more they take.
Over 30 years, the difference between a 0.05% index fund and a 1.0% actively managed fund can exceed $200,000 on a modest portfolio.
The irony: most actively managed funds underperform the cheap index fund they're charging more to compete with.
What You're Comparing
Low-cost index fund: 0.03%–0.20% expense ratio (e.g., VTI, VOO)
Average actively managed fund: 0.50%–1.50% expense ratio
High-fee fund or advisor-managed account: 1.00%–2.50% all-in costs
Run the Numbers
Adjust the sliders and inputs. Watch how a tiny fee percentage becomes real money.
What To Do With This Knowledge
- Check the expense ratio of every fund you own (it's on the fund's webpage or your brokerage account)
- If you're paying more than 0.20% for a broad market index fund, you're overpaying
- If a financial advisor charges 1%+ of assets under management, calculate the dollar cost over your investing lifetime
- This doesn't mean all advisors are bad — but you should know exactly what their fee costs you in real dollars
Understanding fees is one of the highest-return financial skills you can develop.