Use annual return to compare investments over different time frames. Calculate annual return: Adjust purchase price for splits, then annualize simple return. Dividends can be included by using ...
For example, suppose you invested $5,000 annually in your 401(k) and earned 7% average annual returns. Paying a 0.5% fee vs. a 0.25% fee would reduce your returns by nearly $20,000 after 30 years.