Free tool
Management fee calculator for pension and savings funds
What this tool tells you
This tool compares two management fee rates on the same monthly deposit and the same period, and shows how much is left in the fund under each at the end. The gap between the two results is what a small fee difference costs you, based on the numbers you enter.
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The calculation runs in your browser, and the numbers you enter are not sent anywhere.
How it is calculated
The balance is calculated month by month. The deposit lands at the end of each month, and the net return is the assumed annual return minus the annual management fee, compounded monthly. The calculation runs once with fee A and once with fee B, and the gap is the difference between the two balances at the end of the period.
r = (1 + (return − fee) / 100)^(1/12) − 1
balance = deposit × ((1 + r)^n − 1) / r
gap = | balance(fee A) − balance(fee B) |
n is the number of months (years × 12), return is the assumed annual return before fees and fee is the annual management fee in percent.
Assumptions
- The monthly deposit is constant and the balance starts at zero.
- The fee is modelled as a yearly percentage of the balance. A fee charged on deposits is not part of this tool.
- The assumed return before fees is the same in both cases and stays constant for the whole period.
- The calculation includes no insurance cost, tax, inflation or other charges.
- Ranges in the tool: a deposit of 500 to 10,000 shekels, 5 to 40 years, a return of 1% to 9% and fees of 0.1% to 2.5%.
How to read the result
- Start with the "gap" card. It is the amount that stays in the fund, or does not, because of the fee difference alone; everything else is identical.
- In the chart, the dashed line is total deposits. The distance between it and each curve is the growth that remained after fees.
- Change the assumed return: the size of the gap changes, but not its direction. A lower fee leaves more in the fund.
- Stretch the number of years and watch the gap widen, because fees are charged every year on a balance that keeps growing.
Limits of this tool
The tool does not know your actual fees, which track you are in or what the return will be. You will find your fee rates in the fund's quarterly or annual report. Moving between providers can affect insurance cover and conditions you have built up, so check with the provider before you decide.
This is an illustration based on the numbers you entered, not personal advice or a recommendation. Check current rules and amounts at gov.il or on the Capital Market, Insurance and Savings Authority website.
Frequently asked questions
How do you calculate the effect of management fees on a pension?
You calculate the balance twice, once at each fee rate, with the net return being the assumed return minus the fee. The difference between the two balances at the end is the effect. This tool does it for you and shows the formula.
Which fee goes into the tool: on deposits or on the balance?
The tool models an annual fee as a percentage of the balance. A fee on deposits is not included, so check both in your fund's report.
What return should I enter?
No one can know a return in advance, and the tool does not recommend a rate. Try several values within the allowed range and watch how the gap changes. The return is an assumption for illustration only.
Where can I see my own management fees?
In the fund's quarterly and annual reports and on the product page on the provider's website. The Shavve app shows them together for every product you connect.
Is the result a forecast?
No. It is an illustration based on the numbers and assumptions you enter. Real returns vary and are not guaranteed.
Read more in the guides
Guides
Management Fees: How a Small Percentage Eats a Big Part of Your Savings
Why a one-point fee gap turns into years of savings, where fees hide in pension and study funds, and which questions to ask your fund manager.
Guides
What is a Pension Fund?
A comprehensive guide to pension funds – how they work, why they matter, and how to choose a track and compare fees.
Guides
How to Read a Pension Statement, Field by Field
A guide to your pension fund's quarterly and annual statement: deposits, fees on deposits and on balance, insurance cover, investment track and beneficiaries, and what to check in each.
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