Super Fee Calculator — How to Calculate the True Cost of Your Super Fees
This article provides general information only and does not constitute financial advice. For advice tailored to your situation, consult a licensed financial adviser. Learn more.
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Understanding the true dollar cost of your super fees is one of the most valuable things you can do for your retirement. Even a 0.5% difference in fees can mean tens of thousands of dollars less at retirement. Here’s how to calculate exactly what you’re paying.
Step 1: Find Your Fee Rates
You need three numbers from your fund’s PDS or member statement:
- Administration fee (dollar amount per year + percentage of balance, if applicable)
- Investment fee (percentage per annum for your chosen option)
- Indirect cost ratio (ICR) (percentage per annum)
Performance fees can be added if disclosed, but they vary year to year.
Where to find them:
- Your annual super statement (in the fees section)
- The fund’s PDS → “Fees and Costs” section
- The fund’s online member portal
- APRA’s heatmap (total fee percentage shown per fund/option)
Step 2: Calculate Your Annual Fee in Dollars
Formula:
Annual fee ($) = Fixed admin fee + (Admin % + Investment fee % + ICR %) × your balance
Example for a $100,000 balance:
| Fee component | Rate | Dollar cost |
|---|---|---|
| Fixed admin fee | $60/year | $60 |
| Admin % | 0.15% | $150 |
| Investment fee | 0.45% | $450 |
| ICR | 0.08% | $80 |
| Total | 0.74% + $60 | $800/year |
As a percentage of balance: $800 ÷ $100,000 = 0.80%
Step 3: Use the Long-Run Fee Impact Calculator
The formula to estimate the drag of fees on your balance over time:
Approximate future cost of fees:
Fee drag ≈ Annual fee % × balance × years × 1.5 (approximate compounding multiplier for 10 years, 2.2 for 20 years, 3.5 for 30 years)
This is a rough estimate. For precision, use the ASIC MoneySmart Super Calculator or a financial planning tool.
Worked example — difference between 0.5% and 1.5% fees over 30 years:
| Scenario | Starting balance | Annual contribution | Gross return | Fee | Approx. balance at 30 years |
|---|---|---|---|---|---|
| Low-cost fund | $50,000 | $10,000 | 7% | 0.5% | ~$800,000 |
| High-cost fund | $50,000 | $10,000 | 7% | 1.5% | ~$650,000 |
| Difference | ~$150,000 |
This estimate does not account for tax — actual results will vary.
Step 4: Compare Against Other Funds
Once you know your current fee rate, compare it:
- APRA heatmap: Shows total fees for each MySuper product on a $50,000 balance
- YourSuper comparison tool (moneysmart.gov.au): Compare up to 4 funds side by side
- Fund’s own PDS: Check the “Fees on a $50,000 balance” table (required disclosure)
Quick Reference: Competitive Fee Benchmarks
| Balance | Competitive annual fee (balanced option) | High fee warning |
|---|---|---|
| $10,000 | < $150 | > $250 |
| $50,000 | < $400 | > $700 |
| $100,000 | < $750 | > $1,200 |
| $250,000 | < $1,500 | > $2,500 |
| $500,000 | < $3,000 | > $5,000 |
These are rough benchmarks — some options (alternatives-heavy, ethical, or managed accounts) will legitimately cost more.
When Higher Fees May Be Justified
Higher fees can be worth paying if:
- The net return (after fees) materially exceeds lower-cost alternatives over 10+ years
- The option provides access to unlisted assets (infrastructure, private equity) not available through lower-cost options
- Embedded financial advice services provide value beyond the fee
The test is always: are you getting value for the extra cost?
Frequently Asked Questions
What is the easiest way to find out my total fee as a percentage? The quickest method is the APRA YourSuper comparison tool at moneysmart.gov.au, which shows your fund’s total annual fee in dollar terms for a $50,000 balance. Divide by 500 to get the approximate percentage. For your actual balance, use: (admin % + investment fee % + ICR %) × balance + fixed admin fee. All inputs are in your fund’s PDS under “Fees and Costs.”
Does the fee impact calculation account for tax? The estimates shown use pre-tax figures. Inside super, investment returns are taxed at 15% in accumulation phase — this applies equally to low-cost and high-cost funds. Fees reduce the fund’s taxable income slightly (less income to tax), but this effect is small. For post-tax comparisons, reduce the gross return assumption by approximately 15% × the expected return rate.
I have multiple super accounts — how do I calculate my total cost? Calculate the annual fee for each account separately, then add them together. Note that multiple accounts often mean paying duplicate fixed administration fees — for example, $60/year in fixed fees at three separate funds ($180 total) when you could pay just $60 at one consolidated fund. Consolidating is often the fastest way to reduce total fees. See How to Consolidate Your Super.
How do I use the APRA heatmap to compare fees? Go to apra.gov.au → Statistics → MySuper Statistics → Heatmap. The fee column shows total fees for a $50,000 balance per MySuper product. Products in the red/orange zone for fees are above average. Products that have failed the APRA performance test will be marked accordingly — failing funds must notify members and explain their options for switching.
Can I claim a tax deduction for super fees I pay? No — fees paid inside super reduce the fund’s taxable income at the fund level, not your personal taxable income. You cannot deduct super fund fees on your personal tax return. If you are self-employed and making personal deductible contributions, the tax deduction applies to the contribution itself, not to the fees charged by the fund.
Is there a fee difference between accumulation and pension phase? Some funds charge different fees in pension phase compared to accumulation. Many large industry funds offer the same option in both phases at the same investment fee and ICR. However, some funds offer reduced administration fees in pension phase. When comparing pension phase options, check the pension PDS specifically — it may differ from the accumulation PDS.
For more: How Are Super Fees Calculated?, How Much Are You Paying in Super Fees?, Total Cost Ratio, Indirect Cost Ratio. For advice on your situation, speak with a licensed financial adviser via MoneySmart.