Fund and ETF Fees Calculator
Compare two funds or ETFs with different annual fees (TER) and see how much money you lose to fees over the long term.
Results
Difference between the two funds
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Fund 1 final value
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Fund 2 final value
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Total cost in fees (fund 1)
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Total cost in fees (fund 2)
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Final value = initial capital × (1 + r)^n + monthly contribution × [(1 + r)^n − 1] / r, where r is the net monthly return (gross return minus the fund's annual fee) and n is the number of months. The cost in fees is the difference between the fee-free final value and each fund's actual final value.
Year-by-year comparison
| Year | Fund 1 | Fund 2 | Difference |
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When should you use this calculator?
This calculator compares two funds, ETFs or pension plans with different annual fees (TER, Total Expense Ratio) to show the compounded long-term cost — something that's barely noticeable in the short term but can add up to tens of thousands over several decades.
Legal context in Spain
The TER covers management, custody and other ongoing fund expenses, expressed as an annual percentage of assets. It doesn't include buy/sell trading costs or the tax impact, which varies by country of residence.
A fee difference that looks small, like 1% a year, compounds year after year just like interest does: the longer the time horizon, the bigger its cumulative effect on the final balance.
The result is a mathematical estimate based on a constant gross return, which in reality varies year to year. It is not investment advice or a recommendation of any specific product.
Frequently asked questions
What is a fund's TER?
The TER (Total Expense Ratio) is the annual percentage a fund or ETF charges on assets under management to cover administration, custody and other ongoing costs. It's automatically deducted from the fund's net asset value, so investors don't pay it separately.
Why does such a small fee difference matter so much?
Because it compounds every year on an ever-larger balance, just like interest does. A 1% annual difference can add up to tens of thousands of euros over 25-30 years.
Do index funds always charge lower fees than actively managed funds?
Generally yes, since they track an index without needing a research team, which lowers operating costs. Still, it's worth comparing each product's actual TER, as it varies between providers.
Is the TER the only cost of investing in a fund?
No. There can also be subscription or redemption fees, the bid-ask spread for ETFs, and your broker's transaction costs. The TER only reflects the fund's annual ongoing expense.
Does this calculator account for taxes?
No. The results are gross, before tax. How fund and ETF gains are taxed depends on the investor's country of residence.
What annual return is reasonable to assume long term?
It depends on the asset class: global stock indices have historically averaged around 6-8% a year over the long run, though past performance doesn't guarantee future results.