Expense Ratio Calculator
See the true cost of fund expense ratios on your investment returns. Enter your investment amount, expected returns, expense ratio, and time period. Optionally compare with a lower-cost fund to see potential savings from switching.
Expense Ratio Calculator
FAQ
What is an expense ratio?
An expense ratio is the annual fee charged by a mutual fund or ETF, expressed as a percentage of assets under management. It covers management fees, administrative costs, and operating expenses. A 1% expense ratio means you pay $10 per year for every $1,000 invested.
Why do small expense ratio differences matter?
Due to compounding, even a 0.5% difference in expense ratios can cost tens of thousands of dollars over decades. For example, on a $100,000 investment over 30 years at 10%, a 1% expense ratio costs $174,000 more than a 0.1% ratio.
What is a good expense ratio?
Index funds and ETFs typically charge 0.03% to 0.20%. Actively managed funds range from 0.50% to 2%+. Generally, lower is better unless the fund consistently outperforms its benchmark by more than the fee difference.