How this number is made
A front load is removed before the money is invested. The expense ratio is removed every year by reducing the return. This page compares that path with the same return and no load or fee. The fund-expense page is the annual fee without a load. The return is still an assumption.
- The front load is a percent of the check, not a percent of the amount that gets invested.
- A no-load fund is a zero in the load box. You can still have an expense ratio.
Formula
Invested = check × (1 − load). Each year that balance grows by the return minus the expense ratio. The comparison grows the full check by the gross return.
Worked example
With the figures already in the form, given up to the load and the fee is $6,441.
Questions
What about a back-end load?
Not modeled. A deferred sales charge depends on how long you stay. Subtract it from the ending balance yourself if you know it.
Do loads ever pay for themselves?
Not inside this math. A load only wins if the fund’s return is higher than the alternative by enough to cover it, which this page does not assume.