Fees
Fees and Savings Goal Growth (Why Net Matters)
Fees can reduce the growth shown in models. It’s safer to test net assumptions instead of only gross ones. This page explains fee drag, shows a quick table, and links to the calculator to test fee adjusted scenarios.
Published: December 22, 2025 · Updated: December 22, 2025 · By FinToolSuite Editorial
Open the calculator
Test gross vs net assumptions for your savings goal.
Open the Savings Goal Timeline CalculatorQuick answer
Fees reduce your net growth rate in a model.
Over longer timelines, small fees can add up.
A simple approach: model a net rate (gross assumption minus fees).
Timing also affects outcomes: start vs end of period.
Disclaimer
Educational purposes only; not financial advice. Examples are illustrative; outcomes aren’t guaranteed. Fees vary by provider and product; taxes and rules vary by country. Rate assumptions are inputs, not promises.
What fee drag means
If a model assumes 4% growth but annual fees are 1%, the net might be closer to 3% (illustrative). Actual fee structures differ; this is a planning simplification to stress-test results.
Illustrative gross vs net table
| Assumed “gross” rate | Fee | Illustrative “net” rate |
|---|---|---|
| 4.0% | 0.5% | 3.5% |
| 4.0% | 1.0% | 3.0% |
| 4.0% | 2.0% | 2.0% |
Illustrative only; real fees can be structured differently.
Mini example (illustrative)
Goal £10,000; start £2,000; save £200/month. Run the calculator with a gross assumption (e.g., 4%), then rerun with a net assumption after fees (e.g., 3%). Compare the timeline and end balance.
Try it: Savings Goal Timeline Calculator.
How to model fees in the calculator
- Decide if you’re modeling saving only (0% baseline) or a growth assumption.
- Pick a gross assumption (low/base/high): rate assumptions.
- Subtract an estimated fee to create a net assumption for testing.
- Run both and compare timelines and balances.
Fee types differ; this is for sensitivity testing, not precision accounting.
Timing note
Contribution timing (start vs end of period) can change results slightly. See timing details.
Common pitfalls
- Ignoring fees when using growth assumptions.
- Assuming one fee number covers every fee type.
- Treating results as guaranteed.
- Changing multiple inputs at once while comparing.
FAQ
What is fee drag?
Fees reduce the modeled growth, so the net rate is lower than the gross assumption.
Do fees matter if I’m just saving cash?
If no fees apply, a 0% baseline shows pure saving. If fees apply, use a net rate for planning.
How do I include fees in the calculator?
Enter a net rate assumption (gross minus your estimated fee) for testing.
Is net rate the same as real return?
Net here is after fees. “Real” also adjusts for inflation. They are different concepts.
What if fees are taken monthly vs yearly?
Fee structures vary. A net assumption is a simplification for scenario testing.
Does contribution timing change the impact?
Yes, timing can shift modeled totals. See timing details.
Are calculator results guaranteed?
No. They depend on inputs and assumptions.
Where can I learn more about fees?
See fees and compounding for more context.
Run three scenarios
Test a 0% baseline, a gross assumption, and a net-after-fees assumption to see the range.
Open the Savings Goal Timeline Calculator