ETF Expense Ratio & Fee Drag Calculator
See what an expense ratio costs over decades, and compare two funds side by side: VOO against SPY, an index fund against an active fund, or your 401(k) option against a cheaper one.
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Default 0.03% (VOO, IVV, VTI). Set it to the fund you are weighing against.
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Quick answer
On $100,000 invested for 30 years at 8%, a 0.03% expense ratio (VOO, IVV, VTI) leaves you about $1,084,000. The same money at 0.75%, a typical active fund, leaves $874,000. The fee difference of 0.72 percentage points a year costs $210,000, about 19% of the final balance, because every dollar paid in fees also stops compounding. Expense ratios are the one return input you control completely.
Expense ratios of common ETFs (2026)
Annual expense ratios as published in each fund's prospectus in 2026. Sponsors cut fees often; the number on the fund page wins if it differs. The right column is the fee drag on $100,000 over 30 years at 8%, against a zero-fee baseline of $1,093,573.
| Fund | Tracks | Expense ratio | Cost per $10,000 per year | 30-year drag on $100,000 |
|---|---|---|---|---|
| VOO (Vanguard) | S&P 500 | 0.03% | $3 | $9,734 |
| IVV (iShares) | S&P 500 | 0.03% | $3 | $9,734 |
| SPY (State Street) | S&P 500 | 0.0945% | $9.45 | $30,369 |
| VTI (Vanguard) | US total market | 0.03% | $3 | $9,734 |
| SCHD (Schwab) | US dividend | 0.06% | $6 | $19,381 |
| QQQ (Invesco) | Nasdaq-100 | 0.2% | $20 | $63,281 |
| VXUS (Vanguard) | International ex-US | 0.05% | $5 | $16,175 |
| BND (Vanguard) | US bonds | 0.03% | $3 | $9,734 |
| VNQ (Vanguard) | US REITs | 0.13% | $13 | $41,559 |
| ARKK (ARK) | Active innovation | 0.75% | $75 | $219,096 |
| Typical active mutual fund | Varies | 0.65% | $65 | $192,627 |
| Target-date fund (index-based) | Glide path | 0.12% | $12 | $38,419 |
Sources: fund prospectuses and sponsor pages (Vanguard, BlackRock iShares, State Street, Schwab, Invesco, ARK), 2026. Active-fund and target-date figures are typical asset-weighted averages (Morningstar fee studies), not a specific fund.
What 1% a year really costs
A 1% fee does not take 1% of your money. It takes 1% of your balance every year, including the growth that balance would have produced. Over 30 years at 8% gross, 1% a year removes about 26% of the final balance; over 40 years it is closer to 32%. The table shows a $50,000 start with $500 a month, which is the calculator's default scenario.
| Expense ratio | Balance after 30 years | Lost to fees | Share of final balance |
|---|---|---|---|
| 0% | $1,291,966 | $0 | 0.0% |
| 0.03% | $1,282,577 | $9,389 | 0.7% |
| 0.09% | $1,264,020 | $27,946 | 2.2% |
| 0.2% | $1,230,756 | $61,210 | 4.7% |
| 0.5% | $1,144,799 | $147,167 | 11.4% |
| 0.75% | $1,078,185 | $213,781 | 16.5% |
| 1% | $1,015,810 | $276,156 | 21.4% |
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Frequently Asked Questions
How much do investment fees really cost?
Fees compound just like returns — in reverse. A 1% annual fee on a $50,000 portfolio growing at 8% over 30 years costs over $120,000 in lost wealth. That is money that would have compounded for you but instead went to the fund manager. This is why index funds with expense ratios of 0.03-0.10% are recommended over actively managed funds at 0.5-1.5%.
What is an expense ratio and what is considered low?
An expense ratio is the annual percentage of your invested assets charged by a mutual fund or ETF for management. Low: under 0.10% (Vanguard, Fidelity, Schwab index funds). Moderate: 0.10-0.50%. High: 0.50-1.5% (actively managed funds). Very high: over 1.5% (some annuities, actively managed niche funds). Always check the expense ratio before investing.
Are higher fee funds worth it for better returns?
Research consistently shows that higher fees do NOT reliably produce better returns. SPIVA data shows over 90% of actively managed funds underperform their benchmark index over 15 years, after fees. A few exceptional active managers exist but are nearly impossible to identify in advance. Most investors are best served by low-cost index funds.