Expense Ratio Impact Calculator
A fund's expense ratio looks small, but over decades it can cost you a surprising amount. This calculator shows exactly how much.
Show solution steps
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What is the Expense Ratio Impact Calculator?
The expense ratio is the annual fee a mutual fund charges, expressed as a percentage of your investment. It's deducted from returns automatically — small each year, but large when compounded over time.
How to Calculate
The calculator compounds your investment at the gross return and again at the return minus the expense ratio; the difference is the true long-term cost.
Formula
Cost = value at (return) − value at (return − expense ratio)
How to Use
- Enter your details in the fields above.
- The result updates instantly as you type.
- Use Copy, Print or Download PDF to save your result.
Frequently Asked Questions
Why do direct plans matter?
Direct mutual fund plans have a lower expense ratio than regular plans (no distributor commission). Over 20+ years, that small difference can add up to lakhs of rupees.
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