PRACTICE ／ Calculation Book
Calculation Ledger — Cumulative Fees
What percentage of the principal does a 1% annual fee erase over twenty years?
When to use When you see an annual fee that you pay for as long as you hold an asset.
Fees deducted annually accumulate with compound interest, regardless of performance. Add the fees for buying, holding, and selling, then enter the total as a single annual percentage.
Try with your own numbers
Change the values to recalculate instantly. The formula is provided below. For the source of the values, see the reference page.
Input value
Output value
Percentage erased（%）—
Amount erased（10,000 yen）—
Formula Percentage Erased = 1 − (1 − Annual Fee Rate)^Number of Years
Related Subjects and Practical Skills
P2 P6 Calculation Ledger — Simple and Compound Interest
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