How Much Do Fees Matter? See For Yourself With Our Expense Ratio + AUM Fee Calculator
Why do we place so much emphasis on reducing our client's fees? Use our expense ratio and AUM fee calculator to see how those investment fees really add up!
If you are having trouble using the calculator, see more detailed instructions below. Also be sure to read the disclaimer below as well.
This is an interactive calculator. Simply enter in values for the grey boxes below, and see for yourself how much those high expense ratios and AUM fees hurt you:
Shocking isn't it?! Seemingly small fees really add up over time!
This is why, when focusing on young clients in particular, eliminating fees has such enormous long term benefits for our clients. It is this reason that our client portfolios are structured the way they are, and the reason we invest the way we do.
Come see what our low cost investing portfolios can do for you.
Avg. Fund Expense Ratio (%): This represents the average percentage fee you are paying for your investments. This is a separate and additional fee from the AUM (Asset Under Management) fee that you pay an investment advisor. All mutual funds and ETFs will list their expense ratios in their prospectus.
AUM Fee (%): This is the fee that you pay your investment advisor. Just ask if you are unaware, or look in your advisor's ADV Part 2 form. We charge 0.7% at Hylland Capital, many charge 1.25% or higher!
Initial Investment: Money that you would be able to invest today.
Annual Addition: Money that you would invest each and every additional year for the duration specified below.
Investment Return (%): This is the return on your investment that you receive each year for the duration specified below.
Duration (In Years): This how how long your initial investment, and subsequent annual additions grow and compound.
For a further look into our investment philosophy, and how we strive to save you money from from these fees, read our blog post here:
The calculator computes an investment’s return using the Future Value function in Microsoft Excel. The “Difference” is derived by subtracting the Future Value function result factoring in the expense ratio and AUM fee from both portfolios.
In other words, if you input 6% for investment return with an average expense ratio of 0.5%, and an AUM fee of 1% for portfolio 1 and an average expense ratio of 1% and AUM fee of 1.25% for portfolio 2, the “Difference" is the variation between and 4.5% return (6% - 1.5%) for portfolio 1 and a 3.75% (6% - 2.25%) return for portfolio 2 over the period.
This assumes that any added expense ratio does not add any potential for out performance. This should only be used to compare similar investments. The results from this calculator are for educational purposes only and should not be used solely to make investment decisions. Any similarity between the numbers used in this calculator and your current investments is purely coincidental.