What are your investment fees really costing you?
A 1% fee sounds like a rounding error. Over decades it quietly compounds against you — often into six figures.
Your fee will take
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How this is calculated
- Future value with monthly contributions:
FV = P·(1+i)ⁿ + PMT·((1+i)ⁿ − 1)/i iis the monthly equivalent of your annual return:i = (1 + annual)^(1/12) − 1, andnis months.- The fee is applied the way the industry charges it — as a reduction of the annual return:
net return = gross return − fee. - Both scenarios use identical contributions. The only difference is the fee.
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