Fees compound against you
A fee isn't a one-off. Every dollar paid in fees is a dollar that stops compounding for you. Over 40 years, a 1% higher fee can cost more than most people expect — often tens of thousands of dollars off the final balance.
Lifetime fee calculator
Fund fees look tiny — half a percent here, a percent there. But they're charged every year on your whole balance, and every fee dollar stops compounding for you. Compare two funds and see the real cost.
Assumptions checked 20 October 2026. Uses settings in force from 1 April 2026: 3.5% employer match and the government contribution of 25c per $1 up to $260.72 a year.
Set your situation, then drag the fee sliders to your funds' actual total fees. Everything updates live. Nothing is stored.
Assumes a 3.5% employer match (the minimum from 1 April 2026), the government contribution (25c per $1, max $260.72), and 2% salary growth. No government top-up above $180,000 annual taxable income; salary is used as a proxy. Assumes full-year NZ-resident eligibility from age 16 to before 65. Part-year eligibility is not modelled. Constant returns for illustration only.
Balance with Simplicity Conservative Fund (0.24%)
$1,260,656
Balance with Fund B (1.50%)
$893,164
Cost of the fee gap
$367,492
Fees paid: $202,541 vs $41,145 — $161,396 more in Fund B
The shaded line is cumulative fees paid to Fund B.
Educational illustration only. Fees, returns and contribution settings vary; this is not financial advice. Find your fund's actual total fee in its product disclosure statement.
A fee isn't a one-off. Every dollar paid in fees is a dollar that stops compounding for you. Over 40 years, a 1% higher fee can cost more than most people expect — often tens of thousands of dollars off the final balance.
Providers quote a management fee, but funds can also carry administration, membership and performance-based fees. The fund's product disclosure statement shows the total. Compare like for like.
Fees matter, but so does whether the fund's risk level suits your timeframe. Paying slightly more for a fund you understand and stick with through downturns can beat a cheap fund you panic out of.
This calculator uses one constant return for illustration. Real returns vary year to year, and past performance is not a reliable indicator of future performance.
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Your fund's product disclosure statement and the annual fund update list the total annual fund charges as a percentage. Sorted.org.nz and the Disclose register (companiesoffice.govt.nz) also publish them.
Yes. From 1 July 2025 it pays 25 cents per dollar of your own contributions, up to $260.72 a year. At least $1,042.86 earns the full amount if you qualify. Annual taxable income must be $180,000 or less. This calculator uses salary as a proxy for taxable income and assumes full-year NZ-resident eligibility from age 16 to before 65.
Because the fee is charged every year on the whole growing balance. A small percentage of a large balance, repeated for decades and removed from the compounding, adds up to far more than the same percentage of your early balance.
No. It is an educational illustration using assumptions you set. Real fee structures and returns differ. Talk to a licensed financial advice provider before making decisions.