Tool
What does a 1% fee actually cost?
A 1% annual fee sounds small. Over 20–30 years of compounding, the difference between a 1.05% active fund and a 0.30% index fund is often six figures. Set your numbers below — same starting balance, same gross return, only the fee differs.
Inputs
Compare two annual fees
Both funds get the same starting balance, monthly top-up, and gross return. Only the annual fee differs.
Fund A — 1.05% annual fee
$262,431
Final balance after 20 years
- Total you contributed
- $130,000
- Total fees paid
- $23,370
Fund B — 0.30% annual fee
$289,228
Final balance after 20 years
- Total you contributed
- $130,000
- Total fees paid
- $7,130
The fee gap
$26,797
Over 20 years, the cheaper fund (Fund B, 0.30%) leaves you with $26,797 more than the higher-fee fund (Fund A, 1.05%) — assuming both achieve the same 7% gross return.
Year-by-year balance
Yr 1
Fund A
$16,778
Fund B
$16,879
Yr 3
Fund A
$31,602
Fund B
$32,095
Yr 5
Fund A
$48,295
Fund B
$49,486
Yr 7
Fund A
$67,092
Fund B
$69,364
Yr 9
Fund A
$88,258
Fund B
$92,084
Yr 11
Fund A
$112,092
Fund B
$118,052
Yr 13
Fund A
$138,929
Fund B
$147,732
Yr 15
Fund A
$169,150
Fund B
$181,656
Yr 17
Fund A
$203,179
Fund B
$220,430
Yr 19
Fund A
$241,497
Fund B
$264,747
Yr 20
Fund A
$262,431
Fund B
$289,228
Caveats
- Real-world returns vary year to year. This calculator assumes a constant gross return and constant fee — useful for illustrating the fee impact, not for forecasting actual outcomes.
- Past performance is not a reliable indicator of future returns.
- Tax (PIR) is NOT applied here. Use the PIR calculator to see the tax impact separately.
- Fund-fee figures are usually quoted "after performance fees" or "before performance fees" — check the PDS to confirm.
- This is general information only, not personalised financial advice.