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The long-run cost of 0.25%, 0.50%, 1% and 2% investment fees

A reproducible, provider-neutral benchmark separating direct fees from the compound growth those fees can no longer earn.

Published by GrowThenDraw Editorial Team · Editorial policy · Methodology & sources

Published 1 August 2026 Version 1.0 No provider sponsorship Full CSV available

100,000 invested once for 20 years at a 4% gross annual return, matching Investor.gov’s published illustration.

Changes the symbol only. The benchmark does not make an FX or purchasing-power conversion.

Total cost of a 1% fee after 20 years
$39,899
18.2% of the no-fee mathematical reference.
No-fee reference
$219,112
Ending value at 1%
$179,213
Direct 1% fees
$27,337
Growth those fees lose
$12,562

At 1%, this scenario retains 81.8% of the no-fee reference. Direct fees and missed growth reconcile to the total fee cost.

Ending wealth across the fee ladder

$109.6K$219.1K0.00% annual fee: $219.1K ending value; $0 total fee cost0.05% annual fee: $216.9K ending value; $2.2K total fee cost0.10% annual fee: $214.8K ending value; $4.3K total fee cost0.25% annual fee: $208.4K ending value; $10.7K total fee cost0.50% annual fee: $198.2K ending value; $20.9K total fee cost1.00% annual fee: $179.2K ending value; $39.9K total fee cost1.50% annual fee: $162K ending value; $57.2K total fee cost2.00% annual fee: $146.3K ending value; $72.8K total fee costNo fee0.10%0.50%1.5%2.0%
0%–0.25%0.50%1%–2%

Why the 1% cost compounds

Direct deductions versus the future growth they could have earned.

Direct fees deducted: $27,337Growth those fees could earn: $12,562
Direct fees deductedGrowth those fees could earn

Complete benchmark table

The annual fee is the only input changing within a scenario.

Complete dataset CSV
Annual fee Ending value Direct fees Missed growth Total fee cost Potential wealth lost Wealth retained
0% reference$219,112$0$0$00.0%100.0%
0.05%$216,932$1,513$668$2,1811.0%99.0%
0.10%$214,771$3,009$1,332$4,3412.0%98.0%
0.25%$208,413$7,403$3,296$10,6994.9%95.1%
0.50%$198,211$14,414$6,487$20,9019.5%90.5%
1.00%$179,213$27,337$12,562$39,89918.2%81.8%
1.50%$161,954$38,905$18,254$57,15826.1%73.9%
2.00%$146,281$49,245$23,587$72,83133.2%66.8%

Three fixed scenarios, not one cherry-picked example

The SEC reference lets anyone cross-check the engine against a published regulator illustration. The long-term saver adds an existing portfolio and ongoing deposits. The monthly investor shows how fee drag behaves when the portfolio is built gradually from zero. All contributions occur at month-end and every scenario keeps gross return constant across the fee ladder.

How to read the dataset

Direct fees are amounts deducted from the modelled portfolio. Missed growth is the later return those deducted amounts could no longer earn. Total fee cost is their sum and equals the no-fee reference minus the ending balance after fees. Wealth retained is the after-fee ending value divided by the no-fee reference.

What this benchmark does not claim

The fee ladder is not a survey of market averages and does not label any percentage fair, normal or excessive. Returns are smooth assumptions, tax and inflation are excluded, and real funds can differ in holdings, risk, tracking, service and trading costs. The no-fee result is a mathematical reference rather than an available product.

This version isolates one ongoing percentage. Use the full expense ratio and investment fee calculator when a real comparison also includes advice/platform charges, fixed fees, entry charges or exit costs.

Reuse and citation

You may quote the table, reuse the downloaded chart or analyse the CSV with clear attribution to GrowThenDraw and a link to this canonical report. Keep the scenario assumptions visible. Commercial republication of the complete dataset requires permission.

Frequently asked questions

Is this a list of typical or recommended investment fees?

No. The percentages are a comparison ladder, not market averages or recommendations. Actual costs depend on the fund, account, platform, advice arrangement and country.

Why is the no-fee result included?

It is a mathematical reference that makes fee drag measurable. It does not imply that a comparable real investment or service is available for free.

Does changing the currency convert the benchmark?

No. Currency changes the symbol and number formatting only. The three scenarios use fixed nominal units so their mathematical relationships remain reproducible without an exchange-rate assumption.

Can I reuse the table or chart?

Yes, you may quote the results or reuse a chart with clear GrowThenDraw attribution and a link to this report. Do not remove the scenario assumptions or present the illustration as a forecast.

Primary references checked 1 August 2026:

Provider-neutral educational research. No fund, platform or adviser paid for inclusion or placement. Not financial, investment, tax or legal advice.