Disclaimer: This calculator provides estimates only and should not be considered financial or investment advice. Projected returns are hypothetical and based on a constant rate of return — actual returns will vary. MER is one cost component — also consider transaction costs, tax treatment and liquidity. Evercend Pty Limited does not hold an Australian Financial Services Licence.
ETF fee drag calculator inputs and results
Portfolio details
Compare funds
Management expense ratio — check each fund's product disclosure statement.
Enter an initial investment to begin
Enter an initial investment amount and two MER values to see how fees compound into large differences over time.
How ETF fees reduce your investment over time
This calculator shows how an ongoing management fee, often called the management expense ratio or MER, reduces an investment over time. It compares the growth of the same investment at two fee levels so you can see the fee drag, which is the amount the fee takes from your balance across the period.
How to use this calculator
Enter the investment
Enter your starting investment and any regular contribution.
Enter the return
Enter an expected annual return before fees.
Enter the first fee
Enter the management fee as a percentage per year, for example 0.20% or 0.50%.
Enter the second fee
Enter a second fee so you can compare two funds side by side.
Enter the time period
Enter the number of years.
Read the results
The calculator shows the ending balance at each fee level and the difference between them.
How this calculator works
An exchange traded fund is a fund quoted and traded on an exchange that generally seeks to track an index, such as the S&P/ASX 200. The fund charges an ongoing management fee, set as a percentage of the amount invested each year. With an ETF you do not pay this fee separately. It is reflected in the fund's net asset value, so it comes out of your returns rather than arriving as a bill. Because the fee is taken from the balance each year, it reduces the amount that compounds. The gap between a lower fee and a higher fee grows over time, because the fee is charged on a balance that is itself compounding. Small differences in fees can make a big difference to performance over time. A management fee is separate from brokerage, which you pay to a broker when you buy or sell ETF units on an exchange, and from any buy and sell spread. The result is a model, not a prediction. It holds the return you enter steady, and the actual outcome can be higher or lower. Earnings are shown before tax, and investment returns may be added to your taxable income and taxed at your marginal rate.
Assumptions used
Assumptions used: the return you enter applies evenly each year before fees, the fee is charged each year on the balance, and contributions and returns are reinvested. Earnings are shown before tax. The projection does not model brokerage, the buy and sell spread, market ups and downs within the period, tax, or inflation.
Worked example
Two ETFs are identical except for the fee. One charges 0.20% a year and the other charges 1.50% a year.
On the same starting amount and the same return before fees, the lower fee fund ends with a higher balance.
The gap between the two widens the longer the money stays invested, because the fee is charged each year on a compounding balance.
The exact figures depend on the return, fees and years you enter, which the calculator uses to produce the result.
What changes the fee drag on your ETF
Several things change how much the management fee reduces your balance over time. The main ones are:
Management fee
The size of the management fee, and the gap between the two fees you compare.
Return before fees
The expected return before fees, since the fee is charged on a growing balance.
Time period
The number of years, since fee drag compounds over time.
Regular contributions
Any regular contributions, which add to the balance the fee is charged on.
Brokerage and spread
Brokerage and the buy and sell spread, which are separate from the management fee.
Tax
Tax, since earnings can be added to your taxable income and taxed at your marginal rate.
Rates and assumptions used
| Item | Value used | Source |
|---|---|---|
| ETF definition | A managed fund or unit trust quoted and traded on an exchange that generally seeks to track an index. | ASIC MoneySmart, exchange-traded fund glossary |
| ETF fees and brokerage | ETF fees and costs are reflected in the fund's net asset value rather than billed separately, and brokerage applies when you buy or sell on an exchange. | ASIC MoneySmart, Exchange traded funds |
| Fee impact over time | Funds charge fees to manage your money and deduct costs from returns. Small differences in fees can make a big difference to performance over time. | ASIC MoneySmart, Choosing a managed fund |
| Projection disclaimer | A fee projection is a model, not a prediction. Results are estimates and the actual amount may be higher or lower. Earnings are shown before tax, and returns may be taxed at your marginal rate. | ASIC MoneySmart, Managed funds fee calculator |
Figures checked against the sources above on 10 August 2026.
Frequently asked questions
The management expense ratio is the ongoing fee for running a fund, expressed as a percentage of the amount invested each year. It covers the management fee and other costs.
Related calculators and guides
Sources
- •ASIC MoneySmart, exchange-traded fund glossary
- •ASIC MoneySmart, Exchange traded funds
- •ASIC MoneySmart, Choosing a managed fund
- •ASIC MoneySmart, Managed funds fee calculator
Content reviewed and figures checked against the sources above on 10 August 2026.