How much can a small annual investment fee change the final balance?
Fees reduce the money left invested and the future growth that money could earn. A useful comparison must say whether its assumed return is before or after charges.
Investment calculator →Avoid counting a fee twice
If the annual return entered is already net of a management fee, subtracting the same fee again understates the projection. If the return is gross, establish the fee’s calculation base and timing. The investment calculator does not fetch a fund’s expenses or determine which charges are included in a published performance figure. Record those assumptions before comparing products.
Compare two net-growth scenarios
Invest 10,000 for ten years with no additional contributions. At a simplified 5% net annual growth rate, the ending value is approximately 16,288.95. At 4%, it is approximately 14,802.44, a difference of about 1,486.50 using unrounded values. This represents the effect of a one-percentage-point difference in net growth. It does not claim that every real fee can be modeled by simply subtracting one percentage point from a gross return.
Keep the wider comparison visible
Lower fees do not remove market risk or make two products identical in service, liquidity or investment exposure. Transaction costs, taxes, exit charges and charging frequency may change the result. Use separate net-return scenarios to show sensitivity, then retain the actual product terms alongside the calculation instead of allowing one projected balance to stand in for a complete investment decision.
Try the calculators
- Investment calculator
Project an investment with regular contributions.
- Return on investment calculator
Calculate net gain and ROI from cost, final value, income and expenses.
- Compound interest
See how your savings can grow over time.