What is your return after fees?
Explore trading costs, break-even prices and ongoing expenses through worked examples.
A 10% price gain is not always a 10% return
Purchase fees increase your initial outlay; sale fees reduce your proceeds. For a consistent comparison, calculate return against the actual purchase outlay including fees. The example assumes a 0.2% fee on each side and no other costs.
| Item | Amount |
|---|---|
| Purchase value | KRW 1,000,000 |
| Purchase fee | KRW 2,000 |
| Total outlay | KRW 1,002,000 |
| Sale value | KRW 1,100,000 |
| Sale fee | KRW 2,200 |
| Net sale proceeds | KRW 1,097,800 |
| Net profit | KRW 95,800 |
KRW 95,800 divided by the KRW 1,002,000 outlay gives about 9.56%. Fees reduce the account return below the 10% price gain. Transaction tax, capital gains tax, dividends and currency-conversion costs are excluded.
Your break-even price may exceed your purchase price
At 0.2% on each side, the price must rise about 0.4008% just to recover fees. Minimum charges and taxes can change that threshold. Even a zero-commission offer may leave currency-conversion costs and expenses inside a fund.
Distinguish trading fees from ongoing expenses
Trading charges and ongoing fund expenses arise differently. As a simplified illustration, KRW 10 million growing for 20 years at a net annual return of 7% becomes about KRW 38.70 million; at 6%, about KRW 32.07 million. This assumes no extra deposits or tax and does not model a specific fee-deduction schedule.
Three costs to check before calculating
Separate trading rates and minimums, ongoing product expenses, and other costs such as FX and tax. The return calculator applies its fee input separately to both purchase and sale. Entering an annual fund expense ratio there would model the wrong type of cost.
Sources and calculation assumptions
All figures are illustrative assumptions, not actual product returns or market quotes. Worked examples were calculated independently by Doug editorial.