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Hedge Fund Fee Calculator

See exactly what a 2/20 (or any) fee structure costs an LP over time.

Your numbers

Year-1 fees on this structure: $1.2M — unlock the 5-year total and drag

Year 1 management fee
$575,000
Year 1 performance fee
$635,000
Year 1 total fees
$1,210,000
Locked — full breakdown below
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Questions, answered

What is a high-water mark?

A high-water mark means the manager can only charge a performance fee on gains above the highest NAV the fund has previously reached — not on gains that merely recover a prior loss.

Does crystallization frequency (annual vs. quarterly) change the total fees paid?

Yes, generally. On a smooth positive return path, quarterly crystallization tends to lock in slightly more in total fees than annual, because gains are fee-assessed more often. This calculator shows the delta for your inputs.

Is this calculator giving me investment advice?

No. Figures are illustrative estimates computed from your inputs. This is not investment, legal, tax, or accounting advice.

What is a hurdle rate?

A hurdle rate is a minimum annual return the fund must clear before any performance fee accrues at all — it works alongside, not instead of, a high-water mark.

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