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Investment Calculator
Project long-term investment growth and see the true cost of fees.
Fee Impact Analysis
See how much fees really cost over decades
Growth Projections
With vs without fees on the same chart
Monthly Contributions
Regular investing with compound growth
Calculate Investment Growth
Project long-term growth with regular contributions and see the impact of fees.
How Investment Returns Compound Over Time
The Compounding Effect
Investment returns compound — your gains generate further gains. At 7% annual growth, £10,000 becomes £20,000 in ~10 years, £40,000 in ~20 years, and £80,000 in ~30 years. Each doubling takes the same time, but the absolute amounts grow exponentially.
Realistic Return Expectations
Global equities have returned approximately 7-10% annually over the long term (before inflation). After inflation, expect 4-7% real returns. Individual years vary wildly. The key is staying invested through volatility rather than trying to time entries and exits.
The Hidden Cost of Investment Fees
Low-Cost Index Funds (0.1-0.3% TER)
Passive index funds track a market index (e.g., FTSE Global All Cap) at minimal cost. A 0.2% TER on £100,000 over 30 years at 7% growth costs ~£28,000 in fees. The fund grows to ~£733,000.
Actively Managed Funds (1-2% TER)
Active funds charge higher fees for stock-picking. A 1.5% TER on the same £100,000 costs ~£210,000 in fees over 30 years, reducing the final value to ~£551,000. Most active funds underperform their benchmark index after fees.
How to Use This Investment Calculator
Enter Investment Details
Starting amount and monthly contributions.
Set Return & Fees
Expected return and fund expense ratio.
Compare Fee Impact
See growth with and without fees side by side.
Principles of Long-Term Investing
- Start early. Time in the market beats timing the market. Starting 10 years earlier can more than double your final balance, even with the same contributions.
- Contribute regularly. Pound-cost averaging smooths volatility and removes the need to pick the perfect entry point.
- Minimise fees. The difference between 0.2% and 1.5% fees compounds dramatically over decades. Choose low-cost index funds unless you have strong conviction in an active manager.
- Stay invested. Missing the best 10 days in any decade dramatically reduces returns. The cost of being out of the market is usually higher than the cost of riding through downturns.
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