Mutual fund and fees calculator
See how fund charges and sales loads reduce growth compared with a low-cost index fund.
About the mutual fund and fees calculator
See how fund charges and sales loads reduce growth compared with a low-cost index fund.
Part of SmartCalcy’s investing & savings tools. It runs in your browser with no account, uses your own currency and units (change them at the top of the page), and gives estimates for information only, so check official guidance before you rely on a result.
How to use the mutual fund and fees calculator
What it calculates and when to use it
Shows how a fund’s ongoing charge and sales load reduce your growth compared with a low-cost fund, over your investment period.
How to use it, step by step
- Enter the amount invested, monthly additions and the return before charges.
- Enter your fund’s yearly charge and any front-end sales charge.
- Enter a low-cost alternative’s yearly charge and the years.
What each input means
- Yearly charge – Expense ratio or ongoing charges figure.
- Front-end sales charge – Taken from each deposit before it is invested.
How to read the results
- Your fund after charges – The projected balance.
- Cost of your fund – Growth lost compared with a fund with no charges.
- Extra from the low-cost fund – The gain from switching to lower charges.
The formula
Net return = gross return − charge. Balance = (PV × k) × (1 + m)^n + (deposit × k) × ((1 + m)^n − 1) ÷ m, where m = (1 + net)^(1 ÷ 12) − 1 and k = 1 − front load.
A worked example
20,000 plus 300 a month for 25 years at 7% before charges grows to 343,461 with no charges. With a 1.2% charge you end with 278,970, losing 64,492. A 0.15% fund ends at 334,573, which is 55,603 more.
Assumptions and limits
- The same gross return for every fund.
- Active funds may or may not outperform after charges.
Common mistakes
- Ignoring platform fees and trading costs.
- Thinking a 1% charge is small. It compounds.
Frequently asked questions
What is an expense ratio?
The yearly percentage of your investment taken to run the fund. It is taken from returns automatically.
Related tools
Details
- Total you put in
- £110,000.00
- With no charges at all
- £343,461.22
- Cost of your fund
- £64,491.5518.8% of the possible total
- Low-cost fund instead
- £334,572.96
- Extra growth from the low-cost fund
- £55,603.30