Fees and investment returns: account for the whole purchase and sale

Write down what is paid and what comes back

You buy 100 fictional shares at SEK 50 each. The shares cost SEK 5,000. Model L has a purchase fee of SEK 25, making the full payment SEK 5,025. Selling at the same share price returns SEK 5,000 before the sale fee. After another SEK 25 fee, you receive SEK 4,975.

The result is 4,975 − 5,025 = −50 kronor. In this particular model we calculate the return on the entire amount paid: −50 ÷ 5,025 × 100 ≈ −1.00%. State the base clearly. Dividing by the shares’ price amount of 5,000 would use a different starting measure.

The same shares can return different amounts of money

In model H each fee is SEK 75 instead. You pay SEK 5,075 at purchase and receive SEK 4,925 after the sale. The loss is SEK 150, about −2.96% of the full initial payment. The share count and price are identical in both comparisons; the fees differ.

The table is a limited comparison, rather than two complete services. Actual costs may depend on the transaction amount, market and other conditions. Investor.gov describes both transaction fees and ongoing fees. Our model contains only two fixed payments, with no tax, dividends, currency changes or ongoing charge.

If the table does not fit, scroll it sideways.

Which price covers both fees?

To recover the whole payment in model L, the sale amount before the fee must be 5,025 + 25 = SEK 5,050. Dividing by 100 shares gives SEK 50.50 per share. Check backwards: 100 × 50.50 − 25 = 5,025. Only then is the result zero in our model.

The share price therefore needs to rise from 50 to 50.50, an increase of 1%, to cover the invented fees. That price increase is not a profit after costs. This break-even calculation also says nothing about whether the market price will actually reach that level.

Avoid subtracting the same cost twice

If stated final proceeds are already after the sale fee, do not subtract the fee again. Start with a short payment list: the shares’ price amount, purchase fee, sale amount and sale fee. Mark which amounts are already net of a cost.

In a learning activity you can change one cost at a time and check its effect on the result. That makes the model easier to review. This lesson does not describe fee settings in Investiq or compare real brokers. Read the product guide to see what the simulated experience actually covers.