Calculators
Fund Expense Ratio Calculator
Compare how two fund expense ratios affect the final value of an investment and the total cost of fees over time.
- Runs in your browser
- Nothing uploaded
The tool
Enter your numbers below. Results update as you type, and nothing leaves your browser.
Everything you enter stays on your own machine. Nothing is sent to us or to anyone else, which you can confirm in your browser network tab.
What people use it for
- Comparing index funds and active funds
- Reviewing a retirement plan's options
- Showing clients the effect of fees
- Choosing a platform
About this tool
What the Fund Expense Ratio Calculator does
A fund’s expense ratio is the annual fee taken as a percentage of your investment. It looks small, but it compounds: a fee of 0.75% a year can consume a large share of growth over decades. This calculator compares two funds on the same investment and shows the difference in final value.
It also works as a expense ratio calculator.
Formula
- Net return = return before fees − expense ratio
- Final value = initial × (1 + net)^years + contribution × ((1 + net)^years − 1) ÷ net
- Cost of fees = value with no fees − value with fees
Worked example
Using the starting values in the calculator above:
| Input | Value |
|---|---|
| Initial investment | $50,000 |
| Annual contribution | $6,000 |
| Years | 25 |
| Return before fees | 7% |
| Expense ratio, fund A | 0.75% |
| Expense ratio, fund B | 0.05% |
| Result | Value |
|---|---|
| Difference in final value | $76,376 |
| Final value, fund A | $568,624 |
| Final value, fund B | $645,000 |
| Fees cost, fund A | $82,241 |
| Fees cost, fund B | $5,866 |
How to read the result
Fees are one of the few things in investing you control. A low-cost index fund starts every year ahead of a higher-cost fund with the same holdings.
Expense ratios are only part of the cost. Trading costs, platform fees and advice fees can add more.
For education only, not investment advice. Past returns do not guarantee future results.
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Questions
Questions about this tool
The things clients actually want to know — costs, timelines, ownership and what happens after launch.
The annual fee a fund charges, expressed as a percentage of the money invested.
Broad index funds often charge well under 0.2% a year; active funds typically charge more.
It is deducted from the fund's assets, so it shows up as a lower return rather than a bill.
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