etf fee calculator
What your fund’s fee really costs
A fee is a percentage, so it looks small. In dollars, over decades, it isn’t: on $10,000 plus $500 a month for 30 years at 7% a year before fees, VOO’s 0.03% costs you $4,163 and a 1% fee costs $124,384, counting the growth the fees would have earned.
with VOO
$659,992
fees $2,099 + lost growth $2,064 = $4,163 (0.6% of the balance)
with a 1% fee
$539,771
fees $61,193 + lost growth $63,191 = $124,384 (18.7% of the balance)
After 30 years, VOO leaves you $120,221 more, on $190,000 put in. Same market, same money; the only difference is the fee.
What each fund’s fee costs on $10,000 + $500/month, 30 years
| Fund | Fee a year | Fees paid | Lost growth | Total cost | Of the balance |
|---|---|---|---|---|---|
| BNDVanguard Total Bond Market | 0.03% | $2,099 | $2,064 | $4,163 | 0.6% |
| IVViShares Core S&P 500 | 0.03% | $2,099 | $2,064 | $4,163 | 0.6% |
| VOOVanguard S&P 500 | 0.03% | $2,099 | $2,064 | $4,163 | 0.6% |
| VTIVanguard Total Stock Market | 0.03% | $2,099 | $2,064 | $4,163 | 0.6% |
| VXUSVanguard Total International | 0.05% | $3,489 | $3,434 | $6,923 | 1.0% |
| SCHDSchwab US Dividend Equity | 0.06% | $4,181 | $4,117 | $8,298 | 1.2% |
| XLKTechnology Select Sector SPDR | 0.08% | $5,559 | $5,479 | $11,039 | 1.7% |
| SPYSPDR S&P 500 ETF Trust | 0.0945% | $6,554 | $6,464 | $13,018 | 2.0% |
| DIASPDR Dow Jones Industrial Average | 0.16% | $10,995 | $10,881 | $21,875 | 3.3% |
| QQQInvesco QQQ Trust | 0.18% | $12,334 | $12,219 | $24,553 | 3.7% |
| IWMiShares Russell 2000 | 0.19% | $13,001 | $12,886 | $25,888 | 3.9% |
| JEPIJPMorgan Equity Premium Income | 0.35% | $23,421 | $23,404 | $46,825 | 7.1% |
| GLDSPDR Gold Shares | 0.4% | $26,581 | $26,630 | $53,212 | 8.0% |
| ARKKARK Innovation | 0.75% | $47,489 | $48,428 | $95,916 | 14.4% |
| 1% feehypothetical: a typical adviser or active-fund fee | 1% | $61,193 | $63,191 | $124,384 | 18.7% |
$10,000 invested at the start, $500 added at the start of every month, 7% a year before fees, the fee taken monthly from the balance. Lost growth is what the fees would have earned had they stayed invested. The 1% row is a round hypothetical, not a fund.
Same index, different fee
Funds that track the same index differ mostly by fee and trading costs. The head-to-heads set them side by side: VOO vs SPY · VOO vs IVV · VOO vs VTI · SCHD vs JEPI · QQQ vs ARKK. And if you hold several funds, check they are not the same fund twice with the ETF overlap tool.
ETF fees: what people ask
How much does a 1% fee cost over 30 years?
On $10,000 plus $500 a month for 30 years at 7% a year before fees, a 1% yearly fee costs $124,384: $61,193 in fees and $63,191 of growth those fees would have earned. That is 18.7% of the $664,155 you would have had with no fee.
How are ETF expense ratios charged?
You never receive a bill. The fund takes its expense ratio out of its assets a little every day, so it shows up as a slightly lower price and return. A 0.03% fee costs $3 a year per $10,000 invested; a 0.75% fee costs $75.
Is VOO cheaper than SPY?
Yes. VOO charges 0.03% a year and SPY 0.0945%, for the same S&P 500. On $10,000 plus $500 a month for 30 years at 7% a year before fees, VOO would leave you $8,854 more. SPY trades more, which matters to large traders, not to someone who buys and holds.
What is a good expense ratio for an ETF?
Among the 14 popular ETFs on this page, fees run from 0.03% (BND) to 0.75% (ARKK). On $10,000 plus $500 a month for 30 years at 7% a year before fees, that is the difference between losing $4,163 and $95,916 to fees. Broad index funds sit at the bottom of that range.
Why does a small fee cost so much over time?
Because the fee is taken every year from a balance that keeps growing, and every dollar taken stops compounding. Over long periods the growth those fees would have earned can be as large as the fees themselves, which is why a fee calculator shows both.
Expense ratios as reported by Yahoo Finance, refreshed daily. Returns are an assumption, not a forecast; trading costs, taxes and tracking error are left out. Not investment advice.