Project an investment

How the stock calculator works

You enter the current balance, a regular top-up, an expected yearly return, an annual fund or management fee, and the number of years. Inflation is optional.

The expected return compounds monthly. The fee is an annual charge on assets, spread evenly through the year. With no top-ups, one year multiplies the balance by (1 + return) × (1 − fee).

Inflation does not change the nominal balance. It divides each year-end balance by (1 + inflation)^year so you can read purchasing power in today's euros.

Formula

Each month the top-up is added first. The balance is then multiplied by (1 + return)^(1/12) and by (1 − fee)^(1/12). After twelve months and no top-ups those factors collapse to (1 + return) × (1 − fee).

Gain is the ending balance minus everything you contributed, so fees reduce the gain and can make it negative.

A worked example

Defaults: 10 000,00 € invested, 200,00 € added each month, 7% expected return, 0.25% annual fee, no inflation, 20 years.

The nominal balance ends at 135 820,03 €. Contributions are 58 000,00 € and growth after fees is 77 820,03 €.

Questions

Does the fee come off the expected return?

The return is applied first and the fee is then charged on the assets. With no deposits during the year, that is the same as multiplying by (1 + return) × (1 − fee), which is slightly less than subtracting the fee from the return.

What does inflation change?

Only the 'today's euros' series. The nominal ending balance is unchanged. The real value at year t is the nominal balance divided by (1 + inflation)^t.

Is a past market return a promise?

No. The yearly return is an assumption you type. Returno does not look up a market and the result is not financial advice.