Expense Ratio Calculator
See how much a fund's yearly fee eats into your returns over many years.
About the Expense Ratio Calculator
Enter an investment amount, the return before fees, the expense ratios of two funds and the number of years. The calculator shows what each fund grows to and how much the higher fee costs you.
The expense ratio is deducted from the fund every year, so it compounds against you. In India, direct plans skip distributor commission and typically cost 0.5–1 percentage point less than regular plans of the same fund.
The formula
Value = P × (1 + gross return − expense ratio)ⁿ
Worked example
100,000 for 20 years at 11% before fees
- Fund A at 1.5%: grows to about 614,161
- Fund B at 0.3%: grows to about 763,752
- The 1.2-point fee gap costs 149,591, or 19.6% of the final value
Things to keep in mind
- Assumes both funds earn the same return before fees, which is the fair comparison but not guaranteed.
- Entry or exit loads and tax are not included.
Questions people ask
Is a 1% difference really big?
Over 20–30 years it can take 15–25% off your final value.
Are index funds cheaper?
Usually much cheaper than active funds.
Where do I find the expense ratio?
On the fund's factsheet or key information document, as a yearly percentage.