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Investment costs: What do the fees cost over time?

A difference of a few tenths of a percent can look modest on one year's statement. Over a longer period, the costs affect both your balance and the amount that can earn a return later.

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Applies to the amounts in this calculator.

The amount you have invested from the start. Enter 0 if you start from zero.

SEK

The fixed amount you deposit at the end of each month. Enter 0 if you do not deposit.

SEK

The expected return per year, before the costs you are comparing.

%

How long the money is invested. Choose years or months.

The total annual costs in percent for the first product.

%

The total annual costs in percent for the second product.

%

Before tax. The return is the gross return before the costs you are comparing. The cost is deducted after the year's return.

Converted from EUR to SEK at 1 SEK = 0.08973 EUR (ECB, 16.10.2026).

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Worked example
  • Starting amount: 1,114,500.00 SEK
  • Deposit per month: 0.00 SEK
  • Annual gross return: 7 %
  • Term: 20 years
  • Annual cost A: 0.2 %
  • Annual cost B: 1 %

Result

Final value without costs

4,312,763 SEK

Final value with cost A

4,143,492 SEK

Total effect of costs, A

169,272 SEK

Final value with cost B

3,527,439 SEK

Total effect of costs, B

785,324 SEK

Difference (A − B)

616,052 SEK

Working

  1. 20 years = 240 months
  2. without costs: S = K × (1 + i)^N + M × ((1 + i)^N − 1) / i, i = (1 + r/100)^(1/12) − 1
    1,114,500.00 SEK × (1 + 0.005654)^240 + 0.00 SEK × ((1 + 0.005654)^240 − 1) / 0.005654 = 4,312,763.33 SEK
  3. f_A = (1 + r/100) × (1 − c_A/100)
    (1 + 7/100) × (1 − 0.2/100) = 1.0679
  4. i_A = f_A^(1/12) − 1
    1.0679^(1/12) − 1 = 0.005486
  5. final value A = K × (1 + i_A)^N + M × ((1 + i_A)^N − 1) / i_A
    1,114,500.00 SEK × (1 + 0.005486)^240 + 0.00 SEK × ((1 + 0.005486)^240 − 1) / 0.005486 = 4,143,491.50 SEK
  6. f_B = (1 + r/100) × (1 − c_B/100)
    (1 + 7/100) × (1 − 1/100) = 1.0593
  7. i_B = f_B^(1/12) − 1
    1.0593^(1/12) − 1 = 0.004812
  8. final value B = K × (1 + i_B)^N + M × ((1 + i_B)^N − 1) / i_B
    1,114,500.00 SEK × (1 + 0.004812)^240 + 0.00 SEK × ((1 + 0.004812)^240 − 1) / 0.004812 = 3,527,439.05 SEK
  9. effect A = without − A
    4,312,763.33 SEK − 4,143,491.50 SEK = 169,271.83 SEK
  10. effect B = without − B
    4,312,763.33 SEK − 3,527,439.05 SEK = 785,324.28 SEK
  11. difference = A − B
    4,143,491.50 SEK − 3,527,439.05 SEK = 616,052.45 SEK

The calculator compares two annual cost percentages with the same gross return, starting amount and term. You can also include a fixed monthly deposit.

Fees affect more than the year's balance

In the model, the year's cost percentage is deducted from the value after the year's gross return. The growth factor is (1 + gross return) × (1 − cost percentage). With monthly deposits, it is converted to an equivalent monthly factor.

An amount paid in costs can no longer grow with the investment. That is why the difference in final value is larger than the lost fees alone when the return is positive.

Example: 0.2% versus 1%

With 100,000, a 7% annual gross return and 20 years, the model gives about 371,780 at 0.2% annual costs. At 1%, the final amount is about 316,504.

The difference is about 55,276. It includes both the costs and their effect on the return that would have followed.

Use a return that fits the calculation

If a stated historical fund return has already had ongoing fund costs deducted, the same costs should not be deducted again. The return field of the calculator is a gross return before the costs you are comparing.

The result is a model before tax. Actual products may also have brokerage, currency fees and other charges. If you want to calculate the purchase and sale of a specific position, the stock return calculator fits the individual trading costs better.