LifeCost

More in Bank & Bill Fees

What this calculator does

This calculator shows the total cost of a recurring minimum balance fee and expresses it as a percentage of your average balance.

The math

Total fees = monthly fee × months. Effective annual drain = monthly fee × 12 ÷ current balance × 100.

Worked example

A $12 monthly fee on a $120 balance costs $144 per year, which is a 120% effective annual drain.

Why this matters

Fees are often the fastest leak in a budget. This tool shows what a single fee costs over time and what to ask for instead.

Methodology and transparency

This page publishes the exact formula used to compute the result, so you can verify it in a spreadsheet or check the assumptions against your own situation. The worked example uses the tool default inputs; change any number and the result updates live in your browser. No data is sent or stored.

Common questions

Can I avoid the fee?

Often yes. Check if your bank waives it with direct deposit, a minimum balance, or a certain number of transactions.

Is it worth keeping the account?

If the fee is more than the interest you earn, consider switching to a no-fee account.

How is the annual drain calculated?

It is the yearly fees divided by your current balance, showing the fee as a percentage of your money.

Related calculators