Compound interest
Future value of a starting lump sum plus optional monthly contributions with compound growth.
Open calculatorInvestment fees impact
Simulates month by month two variants of the same investment that differ only in the annual management fee (TER). Compounding is monthly, the fee is charged each month on the current balance (TER/12), contributions are credited at the end of each month exactly as in the compound interest calculator, and the entry fee is deducted from every deposit. The model assumes a constant return and ignores inflation (see the purchasing power calculator) and performance fees.
Amount you invest at the start. With an entry fee, the commission is taken from this deposit too.
Fixed amount added every month (credited at month end). Enter 0 for a one-off investment.
Average annual return before fees and tax, e.g. 7 for a broad stock index. The model keeps it constant every year.
%
Number of full years the capital stays invested. The longer the horizon, the more fees cost through lost compounding.
Total expense ratio (TER) of the first variant, e.g. 0.2 for a cheap index ETF. Charged monthly as 1/12 of the current balance.
%
Total expense ratio (TER) of the variant to compare, e.g. 2 for an actively managed fund.
%
One-off commission deducted from every deposit, including the starting capital. Enter 0 if there is no entry fee.
%
Capital difference between variants
203,001Variant A: 44.2% more final capital than the costlier variant B
Final capital A (0.2%)
662,755
Final capital B (2%)
459,755
Total fees A
13,988
Total fees B
108,785
Gain eaten by fees A
5.7%
Gain eaten by fees B
46.2%
Total deposits
190,000
Capital with no fees at all
691,150
Assumptions: the same return every year, no inflation and ongoing fees only (no performance or transaction fees). “Gain eaten by fees” is the share of the fee-free gain that is missing after fees and the compounding lost on them.
- A: 0.2%
- B: 2%
- Total deposits
Show year-by-year table
| Year | Deposits | Capital A | Capital B | Fees A | Fees B |
|---|---|---|---|---|---|
| 1 | 16,000 | 16,892 | 16,649 | 26 | 262 |
| 2 | 22,000 | 24,267 | 23,638 | 67 | 661 |
| 3 | 28,000 | 32,160 | 30,984 | 123 | 1,203 |
| 4 | 34,000 | 40,607 | 38,704 | 195 | 1,897 |
| 5 | 40,000 | 49,646 | 46,819 | 285 | 2,750 |
| 6 | 46,000 | 59,319 | 55,348 | 394 | 3,770 |
| 7 | 52,000 | 69,671 | 64,312 | 523 | 4,965 |
| 8 | 58,000 | 80,748 | 73,733 | 673 | 6,345 |
| 9 | 64,000 | 92,603 | 83,636 | 846 | 7,919 |
| 10 | 70,000 | 105,290 | 94,044 | 1,044 | 9,696 |
| 11 | 76,000 | 118,866 | 104,983 | 1,268 | 11,688 |
| 12 | 82,000 | 133,395 | 116,480 | 1,521 | 13,905 |
| 13 | 88,000 | 148,942 | 128,564 | 1,803 | 16,359 |
| 14 | 94,000 | 165,581 | 141,265 | 2,118 | 19,061 |
| 15 | 100,000 | 183,387 | 154,615 | 2,467 | 22,025 |
| 16 | 106,000 | 202,441 | 168,645 | 2,854 | 25,263 |
| 17 | 112,000 | 222,832 | 183,392 | 3,279 | 28,791 |
| 18 | 118,000 | 244,654 | 198,891 | 3,747 | 32,621 |
| 19 | 124,000 | 268,007 | 215,182 | 4,261 | 36,771 |
| 20 | 130,000 | 292,997 | 232,304 | 4,823 | 41,256 |
| 21 | 136,000 | 319,741 | 250,299 | 5,437 | 46,094 |
| 22 | 142,000 | 348,360 | 269,214 | 6,106 | 51,302 |
| 23 | 148,000 | 378,987 | 289,094 | 6,835 | 56,899 |
| 24 | 154,000 | 411,763 | 309,988 | 7,627 | 62,906 |
| 25 | 160,000 | 446,838 | 331,949 | 8,487 | 69,342 |
| 26 | 166,000 | 484,373 | 355,030 | 9,420 | 76,231 |
| 27 | 172,000 | 524,541 | 379,290 | 10,431 | 83,595 |
| 28 | 178,000 | 567,526 | 404,788 | 11,525 | 91,458 |
| 29 | 184,000 | 613,527 | 431,588 | 12,709 | 99,846 |
| 30 | 190,000 | 662,755 | 459,755 | 13,988 | 108,785 |
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Educational estimate only. Not medical, tax, legal or financial advice.