Compound Cost of Fees

Fees look tiny yearly but compound like returns do — against you. The calculator shows the future wealth lost to an ongoing cost percentage. The computation rests on Cost = P(1 + r)^t − P(1 + r − fee)^t. A 100,000 portfolio growing at 7% for 25 years ends at ≈542,700; paying a 1.2% annual fee cuts the net return to 5.8% and the outcome to ≈409,400 — a ≈133,300 lifetime cost of fees. Each input you type is substituted the instant you release the key, and the result is expressed in exactly the units or currency you chose.

1. 1

   Step 1

   Start with the primary figures the Compound Cost Calculator asks for.

2. 2

   Step 2

   Your values are substituted into Cost = P(1 + r)^t − P(1 + r − fee)^t.

3. 3

   Step 3

   Read off the computed result.

4. 4

   Step 4

   Vary one input at a time to see its effect.

• Judging fees per year

• Ignoring trading costs

• Forgetting tax drag