Two accounts can hold the same investments, receive the same contributions and still end decades apart in value. The difference is cost. This calculator projects a brokerage, IRA or 401(k) account with contributions that rise over time, then runs the same plan twice — once with your fees and once without — so you can see what those fees add up to in dollars.
How to use the investment account calculator
- Enter the current account balance.
- Enter your regular contribution, how often you make it, and an optional yearly raise to the contribution.
- Enter the expected return before fees.
- Enter your total annual fees as a percentage of the balance — fund expense ratios plus any advisory fee.
- Enter the number of years and choose whether contributions go in at the start or end of each period.
The chart plots three lines: the balance with no fees, the balance after fees and the total you contributed. The table breaks each year into contributions, growth, fees and the two balances.
How fees are modeled
Fund expenses and advisory fees are charged as a percentage of assets, a little at a time. For each period the calculator applies:
where r = (1 + gross return)1/p − 1, f is the annual fee and p the number of periods per year. The net yearly return is therefore [(1 + r)(1 − f/p)]p − 1 — at 7% gross and a 1% fee, about 5.935%.
Worked example
You hold $25,000, invest $500 a month and raise that by 2% a year. Your portfolio is expected to earn 7% before costs, and you pay 1% a year in combined fund and advisory fees. After 25 years:
- Total contributed: $217,181.80, including the starting balance
- Balance with no fees: $604,506.21
- Balance after fees: $510,569.41
- Fees deducted along the way: $51,052.10
- Total cost of fees: $93,936.80 — the deducted fees plus the growth they would have earned
Fee levels compared
The same plan at different total fee levels:
| Annual fees | Ending balance | Cost of fees | Net annual return |
|---|---|---|---|
| 0.05% | $599,344.85 | $5,161.35 | 6.947% |
| 0.25% | $579,214.97 | $25,291.24 | 6.733% |
| 0.50% | $555,171.60 | $49,334.61 | 6.466% |
| 1.00% | $510,569.41 | $93,936.80 | 5.935% |
| 1.50% | $470,216.06 | $134,290.14 | 5.406% |
| 2.00% | $433,679.07 | $170,827.14 | 4.880% |
Broad index funds often charge well under 0.1% a year, while actively managed funds and advisory relationships commonly add up to 1% or more. A fee is worth paying only if it buys something you value — planning, behavioral coaching, tax management — that you would not otherwise get.
Where to look for your fees
- Expense ratio: listed in each fund’s prospectus and fact sheet; it is already netted out of the fund’s reported returns.
- Advisory fee: shown in your advisor’s agreement (Form ADV Part 2A for registered advisers) and deducted from the account, usually quarterly.
- 401(k) plan costs: your plan’s annual fee disclosure lists fund expenses and administrative charges.
To compare two real accounts, enter each one’s total fee and keep everything else the same. For a plan without fees, the simpler investment calculator can also solve for the contribution or return you need, and the retirement savings calculator extends the projection into the withdrawal years.
Projections are estimates for planning, not financial advice. Returns vary from year to year, and actual fees, taxes and account rules may differ.
Frequently asked questions
How much does a 1% fee really cost?
Far more than 1% of your money. In the example on this page — $25,000 plus $500 a month rising 2% a year, earning 7% for 25 years — a 1% annual fee leaves the account about $93,900 smaller, roughly 15.5% of what it would have been with no fees.
Why is the cost of fees larger than the fees deducted?
Every dollar taken as a fee is a dollar that no longer compounds. The calculator shows both numbers: the fees actually deducted, and the larger total shortfall that includes the growth those dollars would have earned.
Which fees should I include?
Add up every cost charged as a percentage of assets: the weighted expense ratio of your funds, any advisory or managed-account fee, and wrap or platform fees. Flat dollar fees and trading commissions are not modeled.
Does this work for a 401(k), IRA or taxable account?
Yes, as long as you ignore taxes. Tax-deferred and Roth accounts grow without annual tax, which matches the calculator. In a taxable brokerage account, tax on dividends and realized gains would lower the result somewhat.
How are fees applied in the calculation?
Each contribution period, the balance first grows at the gross return and then a pro-rated slice of the annual fee (fee ÷ periods per year) is deducted from the balance, which mirrors how fund expenses and advisory fees are charged.