Investment Fees and Returns
Use this calculator to see how a difference in fees affects investment growth.
Initial investment
Annual investment
Years of growth
Rate of return
Lower investment fee
Higher investment fee
|
50,000
|
|
5,000
|
|
25
|
|
6.00%
Input Error: Rate of return
Enter a value between and %. |
|
1.00%
Input Error: Lower Fee
Enter a value less than 2.00. |
|
2.00%
Input Error: Higher fee
Enter a value more than 1.00. |
| Lower Fee | Higher Fee | |
| Rate of return | 6.00% | 6.00% |
| Investment fee | 1.00% | 2.00% |
| Net rate of return | 5.00% | 4.00% |
| Investment value in years | $407,953 | $341,521 |
| Difference | $66,432 |
Investment Value in 25 Years
Lower Fee
Higher Fee
Difference
The investment with a 1.00% fee will grow to $407,953 while the investment
with a 1.00% fee will grow to $341,521, a difference of $66,432
Assumptions
The most common fee charged to manage mutual fund investments is the Management Expense Ratio (MER). Annual investments are made at the end of each year. Investment growth is tax-deferred.
Disclaimer
The most common fee charged to manage mutual fund investments is the Management Expense Ratio (MER). Annual investments are made at the end of each year. Investment growth is tax-deferred.
Disclaimer
