Crusher How To Calculate The Cost Of Returns
Annual fees are particularly onerous because the dollar amount that you pay increases as the value of your holdings increases. Here is an example that shows the impact of annual fees on the overall return of an investment. Assume that you invested 10,000, held it for 10 years at a 6 percent annual rate of return. Paying no fees, you would have 17,908.48. With a two percent annual fee, you would have 14,632.53, an 18.29 percent reduction due to fees.