Model the combined drag of platform, fund and transaction fees on long-term returns.
Fees at different layers add rather than compound against each other, but their effect on the portfolio compounds. Expressing the total as a share of growth rather than of final value shows how much of your gain the charges took. Two layers of apparently modest fees routinely consume a quarter or more of the growth over a working lifetime.
Investment Fee Impact
Net return = gross return − platform fee − fund fee; value compounds at the net rate
Net return = gross return − platform fee − fund fee; value compounds at the net rate Fees at different layers add rather than compound against each other, but their effect on the portfolio compounds. Expressing the total as a share of growth rather than of final value shows how much of your gain the charges took.
Two layers of apparently modest fees routinely consume a quarter or more of the growth over a working lifetime.
This calculator takes 5 inputs: Portfolio value, Gross annual return, Platform or custody fee, Fund management fee, Years held. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.