Foregone Earnings

Foregone earnings represents the difference between earnings actually achieved and the earnings that could have been achieved with the absence of fees, expenses, or lost time. Foregone earnings represents the investment capital that the investor spent on investment fees. The assumption is that if the investor had been exposed to lower fees, there would have been a better return. The concept of foregone earnings is typically used when referring to sales charges, management fees, or total expenses paid to funds.