Understanding the mutual fund calculator
Mutual funds pool money from many investors to buy a diversified portfolio, run by a manager who charges an annual expense ratio. That fee looks tiny often well under 1% but it's deducted every year from your entire balance, so over decades it quietly compounds into a large sum. The gap between the gross and net figures above is money that left your account purely as fees.
This is why low-cost index funds have won so much of the market: a fund charging 0.05% instead of 0.75% can leave tens of thousands more in a long-term investor's pocket for the same market exposure. When comparing funds, weigh the expense ratio heavily it's one of the few costs you can control, and its effect is guaranteed while returns are not.
Results are estimates for education only and are not financial advice.