How to calculate the net return on an investment?
Net return is what actually remains in your pocket after deducting all fees. It's the most important indicator for comparing different investments.
How does it work?
The simulator first calculates your gross amount after growth (capital × (1 + rate)), then deducts fees (capital × fee rate) to get the net amount.
The Formula
Net = P×(1+r) - P×f
Frequently Asked Questions
Net amount = Capital × (1 + growth rate) - Capital × fee rate. For example, with €10,000, +8% growth and 2% fees: 10,000 × 1.08 - 10,000 × 0.02 = 10,800 - 200 = €10,600 net.
In this simplified simulator, fees are one-time and calculated on the initial capital. For a simulation with recurring annual fees, use our compound interest calculator.
Fees on total are calculated on (capital + gains), typical for management fees. Fees on gains only apply to the profit, like capital gains tax. Choose based on the type of fees you want to simulate.
Use annualized net return to compare. If investment A returns 20% over 2 years (≈9.5%/year) and B returns 15% in 1 year, B performs better. Our tool helps you calculate net return for each option.