Investment Fee Impact Calculator
Compare the same investment under two annual charge levels and see how much of the projected balance is consumed by fees over time.
Formula and method
Both scenarios use identical contributions, return and period. Only the annual charge differs.
The charge is applied monthly as 1 − (1 − fee) 1/12 of the running balance, so it compounds against you.
The fee-free scenario is shown as a reference so the total drag is visible in cash terms.
Worked example
€50,000 invested for 25 years at an assumed 7% a year.
At a 0.25% charge the projected balance is materially higher than at 1.5%, even though the difference is only 1.25 percentage points a year.
The gap is larger than the fees paid, because each year's charge also removes the growth that money would have earned.
FAQ
Frequently asked questions
Why do small annual fees matter so much?
A fee is charged on the whole balance every year, including on growth that would otherwise have compounded. Over long periods the compounding you lose is usually far larger than the fee itself.
What should I include in the annual fee?
Add together the fund's ongoing charge, any platform or custody fee and any adviser charge expressed as a percentage of assets.
Are transaction costs covered?
No. Dealing commissions, spreads, foreign exchange charges and performance fees are not included unless you approximate them within the annual percentage.
Is the fee taken from contributions or the balance?
From the balance. The fee is applied pro rata at each compounding step, which is how percentage-of-assets charges normally work.
Does a lower fee always mean a better outcome?
No. Fees are one input alongside the underlying investment, risk and service. This tool isolates the fee effect only, holding the assumed return constant.
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