0.20% annual feeLowest total drag
£606,370 final wealth- Fees deducted
- £15,280
- Growth those fees miss
- £9,853
- Total wealth lost
- £25,133
- Potential wealth lost
- 4.0%
Compare · Calculator 12
How much could investment fees cost you?
Compare up to four ongoing investment fees and separate the charges deducted from the compound growth those charges no longer earn.
1 Enter your figures2 Review assumptions3 Explore the result
Your figures
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0.20% vs 1.50%: final wealth difference
£139,298Under these assumptions, the lower-fee scenario finishes with £606,370, compared with £467,072 after 25 years.No-fee reference£631,503A comparison baseline, not an available product
Money contributed£250,000Before any investment growth or fee deduction
Cost per extra 0.10%£10,715Average across the 1.30 percentage-point gap
Fee comparison through time
How much remains after fees?
No-fee referenceNot a product scenario£631,503
0.20% a year£15,280 fees deducted£606,370
0.50% a year£36,790 fees deducted£570,655
1.00% a year£69,165 fees deducted£516,059
1.50% a year£97,618 fees deducted£467,072
0.50% annual fee
£570,655 final wealth- Fees deducted
- £36,790
- Growth those fees miss
- £24,058
- Total wealth lost
- £60,847
- Potential wealth lost
- 9.6%
1.00% annual fee
£516,059 final wealth- Fees deducted
- £69,165
- Growth those fees miss
- £46,279
- Total wealth lost
- £115,443
- Potential wealth lost
- 18.3%
1.50% annual fee
£467,072 final wealth- Fees deducted
- £97,618
- Growth those fees miss
- £66,813
- Total wealth lost
- £164,431
- Potential wealth lost
- 26.0%
The fee gap compounds into £139,298.
The costliest scenario deducts £97,618 in fees and misses £66,813 of subsequent growth. A higher fee can still be worthwhile, but it needs to deliver enough additional value or net return to overcome this drag.
Assumptions used
- The gross annual return is applied evenly each month before fees.
- Percentage fees are deducted monthly; the fixed annual charge is split into 12 monthly deductions.
- Contributions enter at month end and can rise once each year.
- The no-fee reference uses the same return and contributions but removes all entered charges.
- Tax, inflation, transaction costs, initial charges, withdrawals and volatile returns are excluded.
Fees are only one part of an investment decision. Compare like with like: service, risk, asset allocation, tax treatment and expected return can differ as well as price.
Common questions
Investment fee calculator FAQs
How much do investment fees reduce returns?
Fees reduce the amount that remains invested, so their cost is larger than the cash charge alone. The calculator separates fees actually deducted from the compound growth those charges could otherwise have earned.
Which investment fees should I include?
For each percentage scenario, combine recurring fund, platform, advice and portfolio-management charges that are taken from the invested balance. Add a shared annual cash charge separately. Do not count the same charge twice.
What does percentage of potential wealth lost mean?
It is the gap between the no-fee reference and the after-fee final value, divided by the no-fee reference. The no-fee figure is a comparison baseline rather than a claim that a cost-free investment exists.
Does a lower investment fee always mean a better investment?
No. Price matters, but investments can differ in service, asset allocation, risk, tax treatment and performance. A higher fee must add enough value or net return to overcome its additional drag, which is uncertain in advance.
Are investment fees charged monthly or annually?
Providers use different methods. For a consistent comparison, this calculator converts each effective annual percentage fee to a monthly retention factor and splits a fixed annual charge across 12 months.
Does the calculator include tax and inflation?
No. It isolates investment-fee drag in future pounds. Tax depends on the wrapper and investor, while inflation changes the purchasing power of every scenario rather than the nominal fee comparison shown here.
Why does lost growth become so large over long periods?
A fee removed early cannot earn later returns. Over a long horizon, that foregone return can itself miss further returns, so a seemingly small annual percentage difference compounds into a much larger wealth gap.