Effective Yield After Fees Calculator
See what a fund actually returns after its expense ratio and any advisory fee, and how much fee drag costs you in dollars.
How it works
Net yield = gross return − expense ratio − advisory fee · Fees paid = balance × total fee rate
Fees are quoted in tenths of a percent, which makes them feel harmless, but they are charged on the whole balance every year whether the fund goes up or down. On a 7% gross return, a combined 1.5% in fees is not 1.5% of your money — it is over a fifth of your actual return. Because the fee is subtracted before compounding, its true cost balloons over decades.
Worked example
On $100,000 earning 7% gross, a 0.5% expense ratio plus a 1% advisory fee is 1.5% in total fees. Net yield falls to 5.5%, fees cost $1,500 this year, and that 1.5% is 21% of the 7% you earned.
Frequently asked questions
Is a 1% advisory fee worth it?
It depends on what you get. On a 7% return, 1% is roughly a seventh of your annual gain, and it compounds against you for decades. It can be worth it for genuine planning and behavior coaching, but not for stock picking alone.
Do fees apply even in a down year?
Yes. Expense ratios and most advisory fees are charged on your balance regardless of performance, so in a losing year they deepen the loss.
What is a low expense ratio?
Broad index funds today run from about 0.03% to 0.10%. Anything above roughly 0.5% deserves scrutiny unless it buys a strategy you genuinely can not get cheaply.
Related calculators
Educational estimate using simplified assumptions — real returns, taxes and fees vary. Not financial advice.