Index Fund vs Active Fund Calculator

See how fund fees compound over time and eat into your returns.

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Fee Comparison

Compare index fund (low fee) vs actively managed fund (high fee).

Index fund final value
$0
Active fund: $0 · Difference: $0
Active fund value
$0
Difference
$0
Fees paid (index)
$0
Fees paid (active)
$0
Fee savings
$0
Extra return needed
0%

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Initial investment ($)$50,000
Monthly contribution ($)$1,000
Index fund expense ratio (%)0.03%
Active fund expense ratio (%)0.75%
Gross annual return (%)8%
Time period (years)30
ResultValue
Index fund final value$2,033,072
Active fund value$1,726,877
Difference+$306,195
Fees paid (index)$6,109
Fees paid (active)$136,229
Fee savings$130,120

Values shown are produced by this page in your browser; change any input to update them.

How to use the Fee Comparison

  1. Initial investment ($) β€” default $50,000
  2. Monthly contribution ($) β€” default $1,000
  3. Index fund expense ratio (%) β€” default 0.03%
  4. Active fund expense ratio (%) β€” default 0.75%
  5. Gross annual return (%) β€” default 8%
  6. Time period (years) β€” default 30
  7. Press Calculate to update the results instantly.

Frequently asked questions

Sources & references