Author Topic: Figuring out cost of fees  (Read 808 times)

NYCMustachian

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Figuring out cost of fees
« on: September 13, 2016, 10:17:55 AM »
I'm trying to find a tool that will allow me to calculate the true cost of fund expenses. Not only how much I will be charged in expenses but also how much money those lost expenses could have made if they were reinvested. Does anyone know of a good tool?

Alternatively, is this a correct approach:
I'm going to assume 7% rate of return.
Fund one has an expense ratio of .5%
Fund two has an expense ration of .08%

Can I just use one of the many compounding interest calculators on the web and plug in a 6.5% rate of return for fund one (7-.5) and a 6.92% (7-.08) rate of return for fund two and then compare the difference? Math is not my forte so I'm not sure this is mathematically correct.

I was going to use this calculator:

http://www.moneychimp.com/calculator/compound_interest_calculator.htm

seattlecyclone

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Re: Figuring out cost of fees
« Reply #1 on: September 13, 2016, 12:00:35 PM »
cFIREsim has a field to put in your investment fees. Play around with it to see how much of a difference it makes.