How the calculation works
Gross P/L = capital × assumed return. A simplified performance fee applies only to the amount above the previous high-water mark. Management cost = capital × annual rate × months/12. Net P/L = gross P/L − fees − other costs.
Worked example
With $5,000 allocated, a hypothetical +10% gross result, a 20% performance fee, a 2% annual management fee over six months and $40 other costs, the model yields $310 net profit and $5,310 ending balance, provided the prior high-water mark is $5,000.
How to interpret the output
- A lower provider fee can matter as much as a higher gross return over some periods.
- Negative gross performance can still incur management and trading costs.
- A previous high-water mark may eliminate a performance fee even when a period shows a positive gain.
Important limitations and assumptions
- Real high-water mark policies and daily management-fee accrual differ by provider; this calculator uses a simplified period model.
- Volume fees, swaps, currency conversion, tax, slippage and margin close-out may change the outcome.
- Never interpret a chosen return percentage as likely or promised.
Important: This is a transparent arithmetic illustration, not a trading forecast. Live spreads, execution, broker rules and investor protections can affect actual outcomes.