Expense Ratio Calculator
See how investment fees can quietly reduce your child's account value over time.
0.03% annual fee — examples: VOO, IVV, SPY
Actively Managed Mutual Fund Assumption
1.00% annual fee
What Is A Fund Fee?
Investment funds charge an annual fee called an expense ratio. The fee is automatically deducted from the fund, so parents usually never receive a separate bill.
Want To Learn More About Investment Fees?
Expense ratios may look small, but they can have a meaningful impact on long-term investment growth. Learn how index fund fees work, why low-cost funds are popular, and how fees can affect your child's future account value.
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Learn how small monthly investments, low fees, and time can help build a financial head start for your child.
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This calculator provides hypothetical estimates only and does not guarantee future investment returns. Actual returns may be higher or lower. This calculator is for educational purposes only and is not financial advice.
Why a Small Percentage Can Matter Over Many Years
An expense ratio is the annual operating cost of a fund expressed as a percentage of assets. A difference that looks tiny—such as a few tenths of a percentage point—can matter over long periods because the fee reduces the amount left invested to compound.
Compare funds on the same assumptions
Use the same monthly contribution, time period, and gross return when comparing two fee levels. That isolates the effect of the expense ratio. It does not mean the lower-fee fund will necessarily perform better; investments can have different strategies, risks, holdings, and returns. The calculator is designed to make the cost difference visible, not to rank specific funds.
Example of the decision this can support
If two broadly similar options are being considered for a long-term child account, understanding recurring fees can be one part of the comparison. Parents should also consider diversification, risk, account type, trading costs if any, and whether the investment fits the time horizon.
What is simplified
The calculation uses a steady annual return and simplified fee effect. Real funds deduct expenses continuously from assets, returns fluctuate, and other costs or taxes may apply.