Savings & interest
Investment fee comparison
Compare two supplied annual percentage fees on otherwise identical constant-return savings scenarios, including ongoing contributions.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
monthly net factor = (1 + gross annual return)^(1/12) × (1 - annual fee)^(1/12); ending-balance gap includes fees and their lost future growth
A constant-rate arithmetic scenario, not a forecast or promised return. Supply your own return assumptions; example rates are not recommended investments. Monthly contributions are fixed nominal amounts, not automatically increased for inflation. No taxes, contribution limits, account eligibility, trading costs or benefits are inferred. Negative returns are supported; actual return sequences can differ materially. Both scenarios use the same gross return and cash contributions. Asset-based fees are the only difference; fixed charges, transaction costs, performance fees and differing investment performance are excluded. A lower fee is not a claim that a product is appropriate or will outperform.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Starting investment balance (selected currency): The balance already available at the start, not future contributions.
- Monthly contribution (selected currency): A fixed amount added each month on the selected timing. Do not count the same contribution twice.
- Projection length entry: Use matching records or a clearly stated assumption for the indicated period. Prefilled figures are illustrative. An unknown value is not zero.
- Years to project (years): Use matching records or a clearly stated assumption for the indicated period. Prefilled figures are illustrative. An unknown value is not zero. Used with: Whole years.
- Months to project (months): Use matching records or a clearly stated assumption for the indicated period. Prefilled figures are illustrative. An unknown value is not zero. Used with: Whole months.
- Assumed effective annual return before both fees (%): Supply an assumed annual rate on the selected basis. Use effective annual growth or APY unless you specifically have a nominal rate and compounding frequency. The example is not a current quote or forecast.
- Option A assumed annual asset-based fee (%): Use matching records or a clearly stated assumption for the indicated period. Prefilled figures are illustrative. An unknown value is not zero.
- Option B assumed annual asset-based fee (%): Use matching records or a clearly stated assumption for the indicated period. Prefilled figures are illustrative. An unknown value is not zero.
- When is each monthly contribution added?: Use matching records or a clearly stated assumption for the indicated period. Prefilled figures are illustrative. An unknown value is not zero.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Option A modeled ending balance is $64,664.39 for the illustrative inputs below.
Example inputs
- Starting investment balance: $10,000.00
- Monthly contribution: $100.00
- Projection length entry: Whole years
- Years to project: 20 years
- Assumed effective annual return before both fees: 5.00 %
- Option A assumed annual asset-based fee: 0.25 %
- Option B assumed annual asset-based fee: 1.00 %
- When is each monthly contribution added?: End of month
- Option A modeled ending balance
- $64,664.39
- Option B modeled ending balance
- $57,889.47
- Ending balance difference (A minus B)
- $6,774.93
- Option A modeled fees deducted
- $1,661.66
- Option B modeled fees deducted
- $6,210.29
- Higher ending balance under identical gross return
- Option A
- Fee rates are modeled as equivalent proportional monthly deductions after growth, not guaranteed real-world billing. Balance differences include foregone growth as well as fees actually deducted.
- ━ Option A
- ┄ Option B
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Compare two supplied annual percentage fees on otherwise identical constant-return savings scenarios, including ongoing contributions.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.