Investment Fee Impact Calculator
Same investment, two fee levels. See in euros - not just percentage points - how much of your projected balance a higher charge eats over time.
Formula and method
Both scenarios share the same contributions, return and time period. Only the charge changes.
The fee is deducted monthly, at 1 − (1 − fee) 1/12 of the running balance, so it compounds against you the same way returns compound for you.
A fee-free version is shown too, purely as a reference point, so you can see the full drag in cash rather than just the gap between the two scenarios.
Worked example
€50,000 invested for 25 years at an assumed 7% a year.
At a 0.25% charge the projected balance ends up noticeably ahead of a 1.5% charge, even though the gap is only 1.25 percentage points a year.
The final gap is bigger than the fees actually paid, because every euro taken as a fee is also a euro that stops earning more.
FAQ
Frequently asked questions
Why does a 1% fee matter over 20 years?
Because it's charged on the whole balance every year, including on the growth that fee would otherwise have let compound. Over decades the lost compounding usually costs more than the fee itself.
What goes into the annual fee figure?
The fund's ongoing charge, any platform or custody fee, and any adviser charge - all added together as one percentage of assets.
Does this include dealing costs?
No. Trading commissions, spreads, FX charges and performance fees aren't in here unless you fold an estimate of them into the annual percentage yourself.
Does the fee come out of my contributions or the balance?
The balance. It's applied pro rata at each compounding step, which is how most percentage-of-assets charges actually work.
Is cheaper always better?
Not necessarily. Fees are one factor alongside the investment itself, the risk taken and the service you get. This tool isolates the fee effect only, with the assumed return held constant.
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