Active vs Passive Investing Calculator

Compare the long-term returns of active vs passive investing.

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Active vs Passive

Enter the investment amount, fees, and expected returns.

Passive fund final value
$0
Active fund: $0
Passive fund value
$0
Active fund value
$0
Difference
$0
Passive fees paid
$0
Active fees paid
$0
Fee savings
$0

Worked example

With the default inputs shown below, this calculator returns the following results:

InputValue
Initial investment ($)$100,000
Monthly contribution ($)$1,000
Passive fund fee (%)0.03%
Active fund fee (%)0.75%
Gross market return (%)8%
Time period (years)30
ResultValue
Passive fund final value$2,574,992
Passive fund value$2,574,992
Active fund value$2,164,115
Difference+$410,877
Passive fees paid$7,961
Active fees paid$176,288

Values shown are produced by this page in your browser; change any input to update them.

How to use the Active vs Passive

  1. Initial investment ($) β€” default $100,000
  2. Monthly contribution ($) β€” default $1,000
  3. Passive fund fee (%) β€” default 0.03%
  4. Active fund fee (%) β€” default 0.75%
  5. Gross market return (%) β€” default 8%
  6. Time period (years) β€” default 30
  7. Press Calculate to update the results instantly.

Frequently asked questions

Over long periods most do not. Studies of US equity funds show roughly 80-90% of active managers underperform their benchmark over 10 years or more once fees are counted.
Active funds typically charge 0.5-1.5% a year, index funds 0.03-0.20%. Over 30 years that gap compounds and can swallow a quarter of your final balance.
It still carries full market risk β€” you own the market and fall with it in a crash. What it removes is manager risk and high fees, not market volatility.

Sources & references