This is a reproducible calculation study, using invented fee structures A, B and C. None is an EXAM product or a customer result. All amounts below are USD, for a single purchase of 10,000 and a single sale of 11,000; no income, tax, exchange movements or compounding are included.
Source fact and the question we test
Investor.gov explains that fees reduce investment returns. Our calculation asks a narrower question: with the same gross sale value, how do the location and size of costs change the net result and break-even point? It is not a replication of the source’s long-term growth chart.
Inputs and results you can reproduce
A: purchase fee 0%, sale fee 2%, total holding cost 300. B: purchase fee 1%, sale fee 1%, holding 100. C: purchase fee 2%, sale fee 0%, holding 0. Other costs are 0 in all three. The holding amounts cover the same hypothetical period.
Table scrolls horizontally
| Example | Total amount paid | Net sale proceeds | Net profit / loss | Break-even sale amount (before sale fees) |
|---|---|---|---|---|
| A | 10,300.00 | 10,780.00 | 480.00 | 10,510.20 |
| B | 10,200.00 | 10,890.00 | 690.00 | 10,303.03 |
| C | 10,200.00 | 11,000.00 | 800.00 | 10,200.00 |
Interpretation: a lower fee is only one part
C has the largest net result under these inputs. That does not establish that C is a better investment: nothing in the example measures custody quality, insurance, liquidity, legal rights or counterparty risk. A fee comparison is useful only when the services, rights and timing are comparable.
Try a lower sale amount as well as the illustrated one. A break-even calculation is a threshold under stated assumptions; it does not make that sale price achievable. Before relying on a quote, ask which fees are fixed, which are percentage-based and which can change.
Further reading
These educational references do not imply that EXAM is registered with or endorsed by the source organisations.