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Managed Fund Fee Calculator
Fees are quoted in fractions of a percent and cost six figures over a lifetime. This is the one input in investing you control completely, and the one most investors never quantify.
Management, entry and performance fees · Two-fund comparison
At a glance
Interactive calculator
Live — results update as you type
Two funds, one decision
Fees are the one variable you control with certainty.
Cost of the fee difference
$0less in your pocket after 20 years
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Why the percentage hides the cost
It compounds against you
A 0.85% fee on $250,000 is $2,125 in year one. Across twenty years on this balance it totals $89,525 — and you lose the returns that money would have earned on top.
The hurdle is the real test
An active fund at 1.2% against an index at 0.15% must outperform by 1.05% every year, after tax, just to break even. Most Australian active managers do not clear it over ten years.
Performance fees double-dip
A 20% performance fee on returns above a hurdle sounds fair until you notice it is charged on gross returns while the management fee is charged on assets. In a good year you can pay 2.5%.
$250,000 over 20 years at 7.5% gross
At 0.85% the balance reaches $895,290 and you pay $89,525 in fees. At 0.18% it reaches $1,024,379 on fees of $20,508. The difference is $129,089 — 13% of the final balance.
The expensive fund would need to beat the cheap one by 0.67% a year, every year, after tax, for two decades, just to draw level. That is the hurdle the fee quietly sets, and it is why the cheapest reliable decision in investing is usually the right one.
Managed fund fee questions
What is a reasonable management fee in Australia?
Index funds and ETFs typically charge 0.05–0.25%. Active Australian equity funds sit at 0.75–1.2%. Anything above 1.5% needs a very specific justification, and platform or adviser fees are usually charged on top.
What is the difference between the management cost and the management expense ratio?
The management cost ratio covers the investment manager. The management expense ratio includes that plus administration, custody and other fund costs. The MER is the number that matters to you and it is always higher.
Are fee comparisons in the PDS reliable?
They are the best starting point, but they are historical. A fund's fee can change, and performance fees are inherently variable. Check the actual fee charged on your annual statement, not the estimate in the product disclosure statement.
Do fees matter more than performance?
No — but fees are certain and performance is not. A fund that underperforms by 1% and charges 1% has cost you 2%. The sensible approach is to pay for skill only where evidence supports it, and index everything else.
Are adviser fees included in this?
No. This models investment management costs only. Ongoing advice fees of 0.5–1.1% are typically charged separately, and platform administration on top of that. All three need to be added for the full picture.
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Turn these numbers into a decision
A calculator gives you a range. An adviser gives you a decision — pressure-tested against your super, your tax position and the life you actually want to fund.
General advice only · No obligation · No product push
Compares two funds on management cost only. It excludes adviser fees, platform fees, transaction costs, tax and any fee rebates. Returns are assumed constant before fees. Past fee levels are not guaranteed to continue.
Reviewed November 2026 · FY2026–27 rates and thresholds