The Fee Drag Calculator.
A 0.85% expense ratio doesn't sound like much. See what it actually costs over 30 years — in dollars, compounded.
Brokerage Fee Drag Calculator
See what your expense ratio is actually costing you over time
This is how much your expense ratio costs you over 30 years vs. a 0% expense ratio fund, including compounded growth foregone.
At 0.85%, you're paying significantly more than necessary. Zero-fee alternatives like Fidelity ZERO funds or Vanguard index ETFs can eliminate this drag entirely.
Assumes 8% gross annual return, annual rebalancing, and no tax drag. Zero-fee alternative uses 0.0% ER. Illustrative model only — actual returns will vary and are not guaranteed.
Illustrative projections. All investing involves risk.
Past returns do not guarantee future results.
Why Expense Ratios Compound
An expense ratio doesn't just subtract from this year's gains — it reduces the base on which all future growth compounds. A 0.85% ER on a $100k portfolio costs roughly $850 in year one. But in year 30, after 29 years of compounded growth, the annual fee is dramatically higher — and the total foregone growth is even larger than the fees paid directly.
What Zero-Fee Funds Look Like
Fidelity's ZERO index fund series carries a 0.00% expense ratio — no management fee at all. Vanguard's index ETFs typically run 0.03–0.04%. These are not stripped-down products; they track the same major indices (total US market, international, bonds) as higher-cost alternatives. The main trade-off to research: fund portability and tax treatment when transferring between brokerages.
Eliminate the Drag
Every dollar you pay in fees is a dollar that isn't compounding for you. Vanguard's index funds are among the lowest in the industry, keeping your costs near zero.
Partner: Vanguard