Expense Ratio Calculator

Estimate the future value of your investment and total ETF costs, given expected return and expense ratio.

Initial Investment

Yearly Investment

Duration (years)

Expected Return (%)

Expense Ratio (%)

Expense Ratio Calculator

When investing in mutual funds, ETFs, or index funds, your returns are influenced not only by the expected growth rate but also by the expense ratio. The expense ratio represents the percentage of assets deducted annually by the fund to cover management and operational costs. While it may look small (like 0.5% or 1%), over long durations it can erode a large portion of your wealth.

Our Expense Ratio Calculator helps you understand the true cost of investing by factoring in your initial investment, yearly contributions, expected returns, investment duration, and expense ratio. The result shows both the future value of your investment after costs and the total cost of expenses paid to the fund manager.

🔎 What is Expense Ratio?

The expense ratio is the annual percentage fee charged by a fund to manage your money.

👉 Formula Breakdown:

Future Value without Expenses (FV):
FV = P (1+r)^t + Yearly Contributions × ((1+r)^t − 1) ÷ r

Future Value After Expense Ratio (Adjusted r):
r_adjusted = r − Expense Ratio

Total Cost of ETF:
Total Cost = FV (without expenses) − FV (with expenses)

This shows how much wealth is lost due to fund expenses.

✨ Features of Our Expense Ratio Calculator

✅ Instantly shows future value after costs and total ETF charges

✅ Allows you to compare high-cost vs low-cost funds side by side

✅ User-friendly interface that works on desktop, mobile, and tablets

✅ Free to use, no registration required

✅ Ideal for mutual fund investors, financial advisors, and students

👩‍💼 Who Should Use This Calculator?

Investors – To see how expense ratios eat into returns.
Advisors – To explain cost differences to clients.
Students & Educators – To learn how expenses affect compounding.
Retirement Planners – To maximize savings by minimizing costs.
DIY Investors – To compare active funds vs index funds.

💡 Why Expense Ratios Matter

A 0.5% ratio may look small, but over decades, it can reduce wealth by lakhs.
A 2% ratio can cut portfolio growth by hundreds of thousands.
Lower expense ratios = higher compounding returns in the long run.

✅ The Expense Ratio Calculator is an essential tool for anyone investing in funds. It clearly shows the hidden cost of fees and helps you choose smarter, low-cost investments.

👉 Try the Expense Ratio Calculator today on Hive Calculator and protect your wealth from unnecessary costs!