See what a fund expense ratio costs you in dollars over time.
Please do not make financial decisions based on these results.
What is the Expense Ratio Calculator?
See what a fund expense ratio costs you in dollars over time. To use the Expense Ratio Calculator, enter balance, expense ratio, gross annual return, years; it returns annual fee at today’s balance, value after fees, value with no fees, total cost of fees, and shows them instantly as you type.
Where the Expense Ratio Calculator fits
See what a fund expense ratio costs you in dollars over time. The main figure it returns is the Annual fee at today’s balance, worked out from the values you enter.
It belongs with the other investment tools. If you are comparing options or checking a result from another angle, try the Mutual Fund Calculator, Compound Interest Calculator or the Optimal Hedge Ratio Calculator.
How to use the Expense Ratio Calculator
- Enter your numbers. The inputs are Balance ($), Expense ratio (%), Gross annual return (%), Years. Use a rate of return you consider realistic; small changes compound into large differences. Fields marked optional can stay at zero.
- Read the result. The highlighted box gives the Annual fee at today’s balance, and the cards below show Value after fees, Value with no fees, Total cost of fees. Tables and charts break it down further.
- Test other scenarios. Results update as you type. Change one value at a time to see what drives the answer, and press Reset to go back to the defaults.
Formula and how it works
Example with real numbers
Here is the Expense Ratio Calculator using the default values shown in the calculator above:
Inputs
| Balance ($) | 100,000 |
|---|---|
| Expense ratio (%) | 0.75 |
| Gross annual return (%) | 7 |
| Years | 25 |
Results
| Annual fee at today’s balance | $750.00 |
|---|---|
| Value after fees | $455,222.24 |
| Value with no fees | $542,743.26 |
| Total cost of fees | $87,521.03 |
With these inputs the calculator returns Annual fee at today’s balance: $750.00. Change any value in the calculator to see how the result moves.
What if you change one input?
Sensitivity check: raising Balance ($) from 100,000 to 120,000 (about 20% higher) and leaving everything else as in the example above changes the results like this:
| Result | Example | After the change | Change |
|---|---|---|---|
| Annual fee at today’s balance | $750.00 | $900.00 | +20% |
| Value after fees | $455,222.24 | $546,266.68 | +20% |
| Value with no fees | $542,743.26 | $651,291.92 | +20% |
| Total cost of fees | $87,521.03 | $105,025.23 | +20% |
The input that moves the result most is the one to check twice. Change it in the calculator above to test your own case.
What the results tell you
The results panel of the Expense Ratio Calculator reports Annual fee at today’s balance, value after fees, value with no fees and total cost of fees. Compare these figures while changing one input at a time, and use the related calculators below to look at the same situation from another angle.
Method and limits. This calculator applies the formula in the section above to your inputs, in your browser; nothing you enter is stored on our servers. Investment returns are not guaranteed. The result shows what the numbers you enter would produce, not what the market will do. It is for information, not financial, tax or legal advice.
Frequently asked questions
Does a small difference in expense ratio matter?
Yes. Over decades a 0.5% difference can cost tens of thousands of dollars.
What rate of return should I assume?
There is no guaranteed rate. Test a range of conservative and optimistic rates, and remember that fees and inflation reduce your real return.
Are investment returns guaranteed?
No. Real returns vary. Use these tools to compare scenarios, not to predict results.
Are the results guaranteed?
No. Results depend entirely on the numbers you enter and the formulas shown on this page. Please do not make financial decisions based on them alone; confirm important figures with a licensed professional.
Related investment calculators
- Mutual Fund Calculator
- Compound Interest Calculator
- Optimal Hedge Ratio Calculator
- Information Ratio Calculator
- Sharpe Ratio Calculator
- Sortino Ratio Calculator
- Treynor Ratio Calculator
- Hedge Ratio Calculator
- Investment Calculator
- Finance Calculator
- Simple Interest Calculator
- Annualized Return Calculator