Expense Ratio Calculator

Calculate and compare expense ratios for mutual funds, ETFs, and investment products. Understand how fees impact your long-term investment returns and make informed fund selection decisions.

✓ Fund Cost Analysis ✓ Fee Impact Calculation ✓ Investment Comparison

Expense Ratio Analysis

Investment Parameters

Amount you plan to invest

Regular monthly investment

How long you plan to invest

Expected gross annual return

Fund Comparison

Fund A

Fund B

Fund C (Optional)

Expense Ratio Formula

Expense Ratio = Total Fund Expenses / Average Net Assets
Components:
• Management Fee
• Administrative Fee
• Other Operating Expenses
Annual Cost = Investment × Expense Ratio

Fund Examples

Index vs Active
Compare low-cost index to active fund
ETF Comparison
Compare different ETF options
High-Fee Impact
See impact of high expense ratios

Typical Expense Ratios

Index Funds: 0.03% - 0.20%
ETFs: 0.05% - 0.75%
Active Funds: 0.50% - 2.00%
Target Date: 0.10% - 1.50%
Sector Funds: 0.25% - 1.25%

Fee Components

✓ Management Fee: Portfolio management
✓ Administrative: Record keeping, reporting
✓ 12b-1 Fees: Marketing and distribution
✓ Other Expenses: Legal, audit, custodial
✓ Transaction Costs: Not included in expense ratio

Why Fees Matter

✓ Compound over time
✓ Reduce net returns
✓ Significant long-term impact
✓ Guaranteed cost vs uncertain returns
✓ Lower fees = more money invested
✓ Important for retirement planning
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Understanding Expense Ratios

The expense ratio represents the annual fee charged by mutual funds and ETFs, expressed as a percentage of your investment. These fees are automatically deducted from fund returns.

  • Annual Cost: Percentage of assets charged each year
  • Automatic Deduction: Taken from fund returns, not your account
  • Compound Impact: Reduces growth potential over time
  • Comparison Tool: Key factor in fund selection

Expense Ratio Impact

Long-term Costs

Even small differences in expense ratios can cost thousands over decades of investing.

Fund Selection

Compare expense ratios when choosing between similar funds to maximize your returns.

Index Advantage

Index funds typically have lower expense ratios than actively managed funds.

Hidden Costs

High expense ratios can significantly erode your investment returns over time.