Compounding & fees calculator

Costs compound too

Every percentage point of annual cost is taken from money that would otherwise keep growing. Over 25 years, 1.2% of annual costs removes roughly a quarter of the final value compared with a cost-free portfolio at the same gross return. Low-cost index investing in Europe (for example ETF savings plans that cost 0.1–0.3% a year) exists precisely because of this arithmetic.

A reality check for trading returns

Advertisements for trading courses and signal services often imply monthly returns of 5–10%. Compounded, 5% a month is almost 80% a year; sustained for a decade it would turn €10,000 into several million. Very few professional funds achieve 15–20% a year consistently. Use this calculator to test any claim you are shown: if the implied long-term number is absurd, so is the claim. ESMA's own studies of retail CFD accounts found that most lose money.

The model assumes a constant return and monthly contributions added once a year. Real returns vary, and taxes are not included – see our tax overview.