How much do investment fees really cost over time?

A fee difference that looks small each year compounds into a large gap over decades. For example, paying 0.5 percent instead of 0.05 percent on a portfolio that grows for 25 years can cost tens of thousands of dollars in lost ending value, because the fee is charged on a growing balance every year.

What is a typical Canadian investment fee?

Self-directed ETF portfolios often run well under 0.25 percent all in. Robo-advisors commonly charge around 0.4 to 0.5 percent plus underlying fund costs. Traditional mutual funds in Canada have historically charged 1.5 to 2.5 percent. The all-in percentage is what drives long-term drag.

Is a lower fee always better?

A lower fee leaves more of your return invested, but it is not the only factor. Advice, tax planning, and behaviour coaching can add value that offsets a higher fee for some investors. This tool isolates the pure cost of the fee difference so you can weigh it against what you get for it.

Investment Fee Drag Calculator — Broker Guide Canada

Interactive Tool

Investment fee drag

A fee that looks tiny each year compounds into a large number over decades. See exactly what the gap between two fee levels costs you in lost ending value.

See also the full broker comparison and how to choose a broker.

Last reviewed June 2026

Starting balance (CAD)

Monthly contribution (CAD)

Years invested

25 yrs

Expected annual return before fees

6.0%

Option A annual fee

For example, a managed or robo portfolio.

Option B annual fee

For example, a self-directed low-cost ETF.

What the fee difference costs over time

1.How it is calculated. Each option grows the starting balance plus monthly contributions at the expected return, with the annual fee subtracted from the return and applied monthly. Fee drag is the difference in ending value between the two fee levels, all else equal.

2.Assumptions. A constant return and fee are used for illustration. Real returns vary year to year, and a steady fee can still compound into a large difference over decades, which is the point this tool shows.

3.Fees included. Enter the all-in annual percentage, such as a management fee plus the funds' management expense ratios. This tool is general and does not account for tax, trading commissions, or currency conversion. For those, see the all-in cost calculator.

4.Not advice. Educational illustration only, not investment advice. See disclosures.