Expense Ratio Comparator
e.g. low-cost index fund
e.g. active fund / high TER
Fund A (0.1% ER)
$446,638
Total fees paid: $3,198
Fund B (1% ER)
$394,035
Total fees paid: $29,337
Total invested $130,000
Extra fees in Fund B $26,139
Wealth lost to higher fees $52,603
Over 20 years, the 0.90% higher expense ratio in Fund B costs you $52,603 in final portfolio value.
| Year | Fund A (0.1%) | Fund B (1%) | Difference |
|---|---|---|---|
| 1 | $17,316 | $17,192 | $124 |
| 3 | $34,301 | $33,663 | $638 |
| 5 | $54,988 | $53,369 | $1,619 |
| 7 | $80,184 | $76,945 | $3,239 |
| 9 | $110,873 | $105,153 | $5,720 |
| 11 | $148,251 | $138,901 | $9,350 |
| 13 | $193,776 | $179,277 | $14,499 |
| 15 | $249,224 | $227,583 | $21,641 |
| 17 | $316,758 | $285,378 | $31,380 |
| 19 | $399,014 | $354,524 | $44,489 |
| 20 | $446,638 | $394,035 | $52,603 |