ETF Fee Impact Calculator
Compare ETF growth with and without a management fee to reveal how much even a small percentage fee costs you in dollars over the long term.
Your results
Calculation breakdown
- Net return
- 7% − 0.2% = 6.80%
- Fee impact
- $196,715.14 − $193,068.99 = $3,646.14
Assumptions
- Management fees are assumed to reduce the annual return directly (net return = gross return − fee).
- Ignores brokerage, buy/sell spreads, franking credits and taxes.
How this calculator works
Even a small ongoing management fee compounds into a large dollar cost over a long investment horizon. This calculator compares a gross return scenario against one reduced by your fund's management fee percentage.
Frequently asked questions
What is a management expense ratio (MER)?
The MER is the annual fee charged by a fund as a percentage of assets, covering management and administration costs. It is deducted from returns automatically.
Why does a 0.2% fee matter so much?
Fees compound just like returns do — a small annual drag reduces the balance every year, and that lost growth itself stops compounding, so the gap widens over long periods.
Does this include brokerage or buy/sell spreads?
No, only the ongoing percentage management fee is modelled.
Results are estimates only and are not financial, tax, legal or credit advice.