What is left after the front-end load?

📖 The story

Sarah invests $30,000 in an equity fund with a 4 % front-end load. She wants to know how much of it actually works for her.

ℹ Load applied to the net investment amount.

Change any number and press "Calculate" – or use "Type in" on the right to watch it entered.

What you learn

The front-end load erodes the working capital right from the start – only the net amount earns a return. Anyone comparing products should always look at the load.

In short: The front-end load erodes the working capital right from the start – only the net amount earns a return.

Formula

Net = Gross / (1 + load/100)

With the example numbers

Netto = 30.000,00 € / (1 + 4,00/100) = 28.846,15 €

How to read the formula

Net = Gross/(1+load) – important: the load is applied to the net investment amount, not to the payment. That is why you divide (instead of simply subtracting). Takeaway: of every payment, only the net portion works for you from the start.

More values

Aufschlag eur

1,153.85

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