Cost presets
Expected annual growth6.0%
0gross, before fees12
Fund MER2.00%
03
Time horizon25 yrs
540
Fee drag verdict
Fees consume 30% of your end value over 25 years — $235,389 that compounds for the institution instead of you.
Total cost of fees over 25 years
$235,389
End value, with fees
$560,769
End value, fee-free
$796,157
Fees actually paid
$136,341
Lost compounding
$99,048
growth those fees never earned
Fee-free end value$796,157
Fees paid−$136,341
Lost compounding−$99,048
Your end value$560,769
The drag is bigger than the fees: every dollar paid in year one also forfeits its growth for every year after.
Model assumptions
- Annual compounding; contributions at the start of each year; MER charged on the average of start and end balance.
- Growth rate is constant — real markets are not, but the fee comparison holds because both paths face the same returns.
- Educational estimate, not investment advice.
Sources
- Methodology: standard compound-growth math, no regulatory source required. Fee drag compounds over time — the MER is modeled as an annual charge on the average balance plus flat commissions, against an identical fee-free path.