A fund with a front load and ongoing fees
$10,000 initially plus $200 a month for 15 years, at an 8% gross return with a 3% front load and a 1% expense ratio, grows to $91,027.24.
Mutual fund return calculator
This is an estimate for information only. It is not investment advice — read a fund's prospectus for its actual fee structure.
Result
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How it works
A front-end sales load is charged once, immediately reducing the amount that actually gets invested. The expense ratio works differently — it is subtracted from the gross return every year, so it compounds against you the same way a positive return compounds for you.
This calculator nets both effects out to show the final value you can actually expect, alongside what the same net rate translates to per year.
Formulas used
Amount actually invested
Invested = Initial × (1 − load)
Net annual return
Net return = Gross return − expense ratio
Worked examples
The same fund with no fees, for comparison
With the load and expense ratio both set to zero, the same contributions grow to $102,276.86 instead — the fee drag over 15 years ($11,249.62) is more than the initial investment itself.
Assumptions and limits
- The gross return and expense ratio are constant for the whole period.
- The front-end load applies only to the initial investment, not to monthly contributions.
- No redemption fees, taxes or back-end loads are modelled.
Frequently asked questions
What is a front-end load?
A one-time sales charge, taken as a percentage of the amount invested, paid when shares are purchased — it reduces the amount that actually starts earning a return.
What is an expense ratio?
An annual fee, expressed as a percentage of assets, that a fund charges for management and operating costs — it is deducted continuously, not as a one-time charge.
Why does a 1% expense ratio matter so much over time?
Because it reduces the rate that compounds, not just a flat amount — over decades, a seemingly small yearly drag compounds into a large gap versus a lower-cost fund.
Does this account for taxes on fund distributions?
No — it models investment fees only. Taxes on dividends or capital gains distributions would further reduce the actual take-home growth in a taxable account.
Updated
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