Calculator

Investment fees

See what a fund fee really costs over the life of a growing investment. Enter your starting amount, monthly contribution, expected return and annual fee. The page runs the math live, side by side with the same investment fee-free, so you see the dollar gap. Nothing is sent anywhere.

$
$
%
%

Results are pre-tax projections before any platform or transaction costs, and assume a steady average return each year. Real markets go up and down. Comparisons assume the fee applies across the whole balance each year.

Estimated fee cost
—
Value with fees
—
Value without fees
—
Total fees paid
—
What this means

This is what the annual fee takes out of the final balance that would otherwise have been yours. Every dollar in fees is a dollar that would have kept earning returns for the whole remaining term.

How the annual fee changes it
Annual feeFuture value
Common questions

Investment fee questions, answered

How much do investment fees actually cost me?

More than most people expect. Because you pay the fee as a percentage of your whole account each year, it changes the size of the balance you earn returns on AND reduces the average return you receive. Over a long term a 1% fee can shave a large share of your final balance, simply because it compounds against you for decades.

What is a reasonable investment fee in NZ?

For a broad index fund or passive fund, a total fee around 0.25% to 0.60% a year is reasonable in New Zealand. Actively managed funds often charge 1.25% or more. The bulk of the long-run return usually comes from the market, so a low-fee fund that simply tracks the index tends to leave more money in your pocket over a lifetime of investing.

Why do fees compound against me?

Fees are deducted every year as a percentage of your growing balance, and every dollar taken out is a dollar that would otherwise have earned returns itself. The fee each year keeps getting deducted from a bigger and bigger account, so the cost snowballs the same way your returns do, just in the opposite direction. That is why small fee differences grow into large dollar gaps.

Should I switch to a lower-fee investment fund?

Often yes, but check the facts before you move. Compare the funds' total fees, their after-fee performance history, and whether switching would trigger a sale of gains in a taxable account. For many New Zealanders the switch to a low-fee index fund is worthwhile because the fee saving compounds for decades. Moving money within a KiwiSaver or managed fund typically does not create a taxable event, so the change is usually straightforward.