Growth

Mutual Fund Calculator

Project fund growth and see the real drag that expense ratios have on long-term returns.

Parameters

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Results

Final balance (after expenses)
$323.2k
Net return: 7.50% annually
Total contributions
$130.0k
Investment growth
$193.2k
Cost of expense ratio (drag)
$22.5k

Balance over time

Mutual fund basics

Expense ratio

The annual fee charged by the fund, expressed as a percentage of assets. Even a small difference (0.5% vs 1%) compounds into tens of thousands over decades.

Index funds

Index funds typically have expense ratios under 0.1%, far lower than actively managed funds. Over long periods, most active funds underperform index funds after fees.

Dollar cost averaging

Investing a fixed amount monthly regardless of market conditions reduces the risk of investing a lump sum at the wrong time.

Diversification

Mutual funds spread risk across many holdings. A broad market index fund owns thousands of companies, reducing individual stock risk dramatically.

Projections assume constant return rates. Actual returns vary significantly. Not financial advice.