Investment Fee Calculator

What is a TER and why does it matter so much?

TER stands for Total Expense Ratio — the annual percentage of your investment deducted to cover fund management, administration, and performance fees. A TER of 2% means R200 is taken from every R10,000 in your portfolio every year, whether the fund goes up or down. That sounds small, but because it compounds against you (you lose not just the fee but the future growth of that fee), even a 1.5% difference in TER can cost you 20–30% of your eventual portfolio over 30 years. The calculator above shows the exact rand figure.

What is a typical TER for SA unit trusts and ETFs?

As of 2026: SA index ETFs (Satrix, CoreShares, Sygnia Itrix) charge TERs of 0.1–0.5% per year. Passive balanced funds (10X, Sygnia, Allan Gray Index) charge 0.4–0.9%. Actively managed unit trusts (Allan Gray, Coronation, Ninety One) typically charge 1.5–2.5%. If you use a financial advisor who charges 0.5–1% on assets under management, add that to the fund TER to get your total investment charge (TIC). The difference between a 0.5% TIC and a 2.5% TIC is exactly what this calculator models.

Do higher fees mean better performance?

Decades of global evidence — and mounting SA evidence — say no, on average. S&P's SPIVA reports consistently show most actively managed SA funds underperform their benchmark index over 10+ year periods, after fees. A 2% active fund that beats its benchmark by 1% still costs you 1% more than an index fund — and that gap is guaranteed while the outperformance is not. This is why the FSB/FSCA now requires funds to disclose TERs prominently: fees are the one investment cost you can control.

Should I always choose the lowest fee fund?

Not necessarily. The lowest-fee fund isn't always right: if your TFSA only offers one fund option, you may not have a choice; some asset managers' active funds have genuinely delivered long-run outperformance net of fees (Allan Gray Balanced, for example); and a cheap fund in the wrong asset class is worse than a pricier fund in the right one. The main point of this calculator is to make the fee cost visible — most South Africans have no idea a 1.5% fee difference costs them R500,000+ over 30 years. Once you see the number, you can make an informed choice.

What is the difference between TER and TIC?

TER (Total Expense Ratio) covers the costs inside the fund itself: management fee, audit, custody, performance fee. TIC (Total Investment Cost) includes TER plus all the costs outside the fund: advisor fees, platform fees, and transaction costs. ASISA (the Association for Savings and Investment South Africa) now requires disclosure of TIC alongside TER. When comparing products, always use TIC. The calculator defaults let you model both — set the 'high fee' scenario to a fund's TIC rather than just its TER to see the full picture.

What gross return should I assume?

For a balanced fund or TFSA invested in SA equities, 9–11% per year is a reasonable long-run assumption based on historical JSE returns. Satrix 40 ETF has returned ~11% p.a. over the past 10 years (nominal). Note: the gross return is what the market delivers before any fees. The net return — what you actually earn — is gross minus your TER/TIC. Always compare net returns, not gross.

Does this calculator apply to retirement annuities (RAs)?

Yes, and RA fee drag is especially important because RA money is locked away until age 55. A R2,000/month RA contribution over 35 years at 10% gross return loses approximately R1.5m in wealth by choosing a 2.5% TER fund over a 0.5% TER fund — nearly two years' worth of final distributions. SA regulations now cap RA fees (the Regulation 28 TIC cap was introduced to address this), but many older RA policies still carry high charges. If you're in an older RA, it's worth modelling the switch cost.

Is this the same as the 1% fee impact rule of thumb?

The common rule of thumb is '1% in fees costs you 20–25% of your wealth over 30 years.' The calculator above is more precise: it depends on your actual gross return, time horizon, and contribution pattern. At a 10% gross return over 30 years with R2,000/month, the rule holds fairly well. But at shorter horizons (10–15 years) or lower gross returns (7–8%), the impact of 1% in fees is proportionally larger. Run your own numbers rather than relying on the rule.