Fees & delay
How Fees Make the Cost of Delay Worse
Fees reduce what you keep. When you also wait to start, you lose time and a bit of net growth. Here’s how to think about it with a simple table and a calculator link.
Published: December 22, 2025 · Updated: December 22, 2025 · By FinToolSuite Editorial
Model it in the calculator
Compare start-now vs start-later using a net rate assumption.
Disclaimer
Educational purposes only; not financial advice. Examples are illustrative; real returns vary and investments can go down as well as up. Fees, taxes, inflation, and provider rules vary by country and account type. Nothing here recommends any provider, product, or rate.
Quick answer
Fees lower your net return (the rate that actually compounds). A lower net rate can widen the gap between goals and outcomes, especially over long horizons.
Return assumption guidanceGross vs net return
Gross return is before fees; net return is after fees. Many calculators take one rate input. If you want fees reflected, you can use a “net” assumption as an approximation.
More on fees: fees and compounding.
Illustrative net table
| Gross assumption | Illustrative fee | Approx. net |
|---|---|---|
| 5% | 0% | 5% |
| 5% | 0.5% | 4.5% |
| 5% | 1.0% | 4.0% |
Illustrative only. Real fee structures vary by product and provider.
Fees + delay = less time and lower net
Delay shortens compounding time. Fees lower the rate that compounds. Together, a delayed start plus a lower net rate can widen the shortfall versus a “no fee, no delay” illustration.
Quick scenario (illustrative)
£10,000 lump sum, 15-year horizon. Start now at 5% net vs start later at 5% net. Then see the gap if you model 4% net (to reflect fees). The lower net rate makes the delayed path further behind. Try these in the calculator.
Test your net assumptionHow to model this in the calculator
- Choose a gross assumption you’re considering.
- Subtract an estimated fee to create a net scenario (approximation).
- Run start-now vs start-later using the net assumption.
- Save and compare both scenarios.
Open the tool: Cost of Delay Calculator · Return ranges: return assumption guidance.
Common pitfalls
- Assuming the quoted “return” is what you keep after fees.
- Treating fees as a single simple number (they can be layered).
- Changing both fees and delay simultaneously (harder to isolate the effect).
- Treating projections as guaranteed outcomes.
FAQ
Do fees really matter for the cost of delay?
Yes. Lower net returns shrink compounding and can widen the gap if you also delay.
Should I subtract fees from my return assumption?
You can model a “net” rate by subtracting an estimated fee as an approximation.
What if my fees aren’t a flat percentage?
Many fee structures have tiers and extras. A flat subtraction is a simplification for modeling.
Are fees the same as taxes?
No. Taxes are separate. Both can reduce net outcomes.
Does inflation matter too?
Yes. Inflation affects real purchasing power and is separate from fees.
Are calculator results guaranteed?
No. They’re estimates based on your inputs; real outcomes vary.
How can I compare two providers fairly?
Compare using net assumptions and keep other inputs the same to isolate fees. This is a model, not a recommendation.
Where can I learn more about fees and compounding?
See fees and compounding for a deeper explainer.
Final CTA
Run three scenarios: start now (net rate), start in 6 months (same net), start in 12 months (same net). Compare the gaps.