WealthMER Fee Impact Calculator (Canada)
Compare two fee scenarios
No account needed. Enter the published MER for each scenario; all amounts are illustrative, not linked to a real portfolio.
Illustrative difference in final value
—
over 25 years, versus the low-cost alternative
Editable assumptions above: gross return 6.5%, current MER 2.0%, alternative MER 0.20%. Net return = gross return − MER, compounded monthly. Estimate for illustration only — no named funds, no buy or sell recommendation.
How it works
This simplified model subtracts the annual MER from a fixed nominal annual return assumption, then compounds monthly. Contributions are added at month-end. Returns, fees and contributions are held constant; taxes, inflation, trading costs and changing market conditions are excluded.
FV = P·(1 + r/12)^(12·t) + PMT·[((1 + r/12)^(12·t) − 1) / (r/12)]
At a zero net return, the result is starting capital plus contributions. A negative result difference means the alternative has a lower final value under your assumptions. Currency changes the display unit only, not an exchange rate.
A reproducible example
With CAD $25,000 initially, CAD $300 contributed at month-end for 25 years and a hypothetical 6.5% annual return before fees:
| Scenario | MER assumption | Final value, rounded |
|---|---|---|
| Current | 2.00% | CAD $242,743 |
| Alternative | 0.20% | CAD $338,037 |
The illustrative final-value difference is CAD $95,294, including forgone growth. It is not CAD $95,294 of fees billed, a forecast or a guaranteed saving. These are also the calculator’s initial inputs.
Understand the inputs: MER, management fees and trading expenses in Canada. Source: OSC investor education — understanding Fund Facts.
Frequently Asked Questions
What does the calculator measure?
It compares two hypothetical outcomes with the same starting capital, contributions and assumed return before fees. The only difference is the annual fee rate. The gap includes both fee differences and forgone growth; it is not a statement of fees actually charged.
Should I enter a published fund return?
This model expects a return assumption before fees. Published fund performance generally already reflects the fund’s expenses. Subtracting the MER again from a net return would count that cost twice.
Where can I find the MER?
Check the current Fund Facts or ETF Facts and the provider’s official product page. Use the MER, not only the management fee. Trading expenses, brokerage charges and personal taxes are outside this simplified model.
Does a lower fee mean a better investment?
Not necessarily. Holdings, risk, strategy and services can differ. The two scenarios here share the same assumed gross return only to illustrate the fee effect. They are not a forecast or a recommendation to switch investments.
Start with the holdings you actually own
This calculator compares assumptions. A WealthWise account lets you add your own positions and keep a portfolio overview. It does not import this simulation as real holdings or provide a record of fees actually charged.
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