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Fund fees calculator

See what a 1% fee really costs you.

A fund’s annual charge looks tiny on a factsheet. Compounded over decades on the same pot and the same market return, it can quietly become one of the biggest numbers in the whole plan.

Your plan

£

What you’ve already got invested, if anything.

£
20 years
Annual growth rate, before fees

Fund fees, per year

%

Defaults to a typical low-cost index tracker.

Expensive fund fee

After 20 years, you’d have

Cheap fund (0.15%)£141,509
Expensive fund (0.85%)£128,173
After 20 years, the cheap fund would be worth £141,509 and the expensive fund would be worth £128,173.

Same pot, same monthly contribution, same market return in both scenarios - only the fee is different.

The cost of the higher fee

That’s what a 0.85% fund costs you over 20 years, versus a 0.15% fund - the same pot, the same monthly top-up, the same 7% market return.

“Same contributions. Same market. The only difference between these two funds is what they charge you to hold it - and that difference compounds too.”

Compound growth: a 0.15% fee versus a 0.85% feeA fund charging 0.15% a year reaches £141,509 after 20 years; a fund charging 0.85% reaches £128,173 - a gap of £13,336.Today20 yrs
Cheap fund (0.15%) - £141,509Expensive fund (0.85%) - £128,173
Projected balance by year
YearCheap fund (0.15%)Expensive fund (0.85%)
0£10,000£10,000
1£13,184£13,101
2£16,593£16,399
3£20,242£19,905
4£24,150£23,634
5£28,334£27,597
6£32,814£31,812
7£37,610£36,294
8£42,746£41,058
9£48,244£46,125
10£54,132£51,512
11£60,435£57,239
12£67,184£63,329
13£74,411£69,804
14£82,148£76,689
15£90,432£84,010
16£99,301£91,793
17£108,798£100,069
18£118,966£108,869
19£129,853£118,225
20£141,509£128,173

How this works

Both funds are assumed to track the same market and grow at 7%a year before charges, compounded monthly, with contributions added at the end of each month. Each fund’s fee is modelled as a flat deduction from that growth rate (net return = gross return minus the fund’s annual fee) - a simplification real fund charges only approximate, since a real ongoing charges figure is deducted from fund assets continuously rather than netted off one annual rate. If a fee is higher than the assumed gross return, that fund’s net rate is floored at 0% rather than modelled as a loss. Fees shown are ongoing charges figure (OCF) style annual percentages; platform fees, transaction costs and stamp duty are not included. Real returns and real charges vary and are not guaranteed - this is an illustration of how fee drag behaves, not a promise. This is not financial advice. These are ideas to make you a little bit richer.

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