ETF & Mutual Fund Fee Calculator
See what ETF or mutual fund fees cost you over a lifetime, and how much of your investment growth you keep.
Long-run average for a balanced portfolio.
Bank/advisor mutual funds often run 2 to 2.5%.
Index ETFs ≈ 0.05 to 0.25%; fee-based F-series ≈ 0.9%.
The higher-fee fund ends at $470,317; the lower-fee fund ends at $654,071. Same contributions, same 6% return before fees.
Illustration, not a prediction. Assumes a steady 6% annual return before fees, contributions added monthly, and each fund's fee charged on the full balance every year. The "share of growth you keep" is the fraction of your zero-fee investment gains left after fees, an idea popularized by Larry Bates's T-Rex Score.
ETF and mutual fund fees in Canada
Every Canadian fund charges a management expense ratio (MER), a yearly percentage skimmed from the fund's assets before any return reaches you. Low-cost index ETFs typically run about 0.05% to 0.25%. Bank and advisor-sold mutual funds often run 1.5% to 2.5%, because the MER also funds a trailing commission paid to the advisor and dealer. It is the same kind of cost in both products; the size is what differs, and over decades that gap compounds against you.
How to read the result
The calculator runs the same contributions through two funds that differ only in fee, then shows the ending balance for each, the dollars the higher fee costs you, and the share of your investment growth you keep after fees. The red band on the chart is the money that leaves your account as fees.
What counts as a low fee?
A rough guide for Canadian investors: under 0.30% all-in is low (broad index ETFs and asset-allocation ETFs sit here), 0.30% to 1% is mid (fee-based F-series funds and some active ETFs), and above 1.5% is high (most bank and advisor-sold mutual funds).
Where do the fees go?
In a commission-based mutual fund, the MER covers the fund manager's fee plus a trailing commission paid to your advisor and their dealer for as long as you hold the fund. Index ETFs carry no trailing commission, which is most of why their fees are lower. For the full picture, read what Canadians pay for mutual fund advice.
Do lower fees mean higher returns?
Not directly. A fund's fee does not predict its gross return, and a pricier fund can beat a cheaper one in any given year. What a lower fee guarantees is that you keep more of whatever return the market delivers, which is one of the few edges you fully control, and a large part of why low-cost index ETFs have taken a growing share of Canadian investment dollars.
Part of the fees above pays for advice bundled inside the fund. With a fee-only planner you pay for that advice directly instead, and hold low-cost index funds yourself. Our directory of fee-only financial planners lists advisors across Canada who work this way.
Compare real rates from Canadian credit unions
Many credit unions offer better rates than what you're calculating with. See the current leaders.