Expense Ratio Calculator

Expense ratio calculator

Enter an investment amount, a time horizon, and two expense ratios to compare. The result shows how much extra you pay in fees when one fund costs more than another.

Extra cost from higher fees

$7,031

Over 20 years on $50,000 at 0.03% vs 0.75%. This is the fee drag — money that leaves your account and never comes back.

Low-fee fund total cost $750

High-fee fund total cost $7,781

How it works

annual fee = investment amount × expense ratio
total cost = sum of annual fees over time (simplified, does not compound with returns)

What this tool is for

The Build slot holds your core S&P 500 fund — the one you'll own for decades. A lower expense ratio on a position that compounds matters more than any timing decision. Use this to see why VOO beats higher-fee alternatives over time.

Notes

This calculator shows total fees paid, not the full impact on portfolio value. The real cost is higher because those fees reduce your compounding base each year — meaning you earn less on less money over time. For a $50,000 position held 20 years at 7% average return, the opportunity cost of a 0.72% fee drag is closer to $14,000.

Fund fees for reference

VOO — 0.03% (Build pick)
VTI — 0.03%
SPY — 0.09%
SCHD — 0.06% (Earn pick)
VXUS — 0.07% (Roam pick)
SGOV — 0.07% (Park pick)