How do fees affect a managed fund?

The management fee is charged each year on your whole balance, so it compounds against you. Even a difference of half a percent can cost tens of thousands of dollars over decades, which is why low fees matter as much as returns.

How is a managed fund taxed in NZ?

Most NZ managed funds are PIEs, taxed at your Prescribed Investor Rate (PIR), capped at 28%. The fund pays the tax on your behalf, so your published return is usually after fees but before your PIR; this calculator lets you allow for both.

Do regular contributions help?

Yes. Adding a regular amount harnesses dollar-cost averaging and compounding, and usually contributes most of the final balance over a long period, more than the starting lump sum.

Managed Fund Return Calculator

This New Zealand calculator projects the growth of a managed fund or ETF after the management fee and PIE tax. Fees and tax quietly eat into returns, so seeing the after-cost result is far more useful than the headline rate. You enter your starting balance, regular contribution, expected return, fee and PIR, and the tool shows the final balance and how much fees and tax cost you along the way.

Starting balance

Monthly contribution

Return p.a.

Fee p.a.

PIR

Years

projected balance after fees and tax

You contribute$0

Net growth$0

Applies the return less the fee, then taxes the net growth at your PIR each year, with monthly contributions. A simplified model; real funds vary and returns are not guaranteed. Estimate only, not financial advice.

How it works

The calculator grows your balance month by month at the return less the management fee, adds your monthly contribution, and reduces the net growth each year by your PIR tax. This captures the two biggest drags on a long-run result: the fee, which compounds against you every year, and PIE tax at up to 28%. The final balance is the after-cost figure that actually matters.

Worked example

$10,000 plus $300 a month for 20 years at a 6% return, less a 0.8% fee and 28% PIR, grows to roughly $115,000. You contribute about $82,000 of that, with the rest from net growth, after fees and tax have taken their share.

Related calculators

KiwiSaver Fee Calculator: fee impact.
Compound Interest (PIE) Calculator: PIE vs non-PIE.
Managed Fund vs KiwiSaver: compare.
Investment Calculator: investing growth.

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