Expense Ratio Calculator

Calculate the true cost of mutual fund and ETF fees over time

Investment Details
Typical: 0.03% - 2.00%
Compare two funds
Fund A 0.50%
Final Value $0
Total Contributions $0
Total Fees Paid $0
Net Growth $0
Fund B 1.00%
Final Value $0
Total Contributions $0
Total Fees Paid $0
Net Growth $0
Difference Between Fund A and Fund B
Final Value Difference: $0
Fees Difference: $0
Percentage of Nest Egg Lost to Fees (Fund A): 0%
Percentage of Nest Egg Lost to Fees (Fund B): 0%

What is an Expense Ratio?

An expense ratio is the annual fee that mutual funds and ETFs charge to cover operating expenses. It's expressed as a percentage of your invested assets.

The Impact of Fees

Over long time horizons, seemingly small differences in expense ratios can significantly impact your investment returns due to compound growth.

Industry Averages

  • Index Funds: 0.03% - 0.20%
  • Actively Managed: 0.50% - 1.00%
  • Specialty Funds: 1.00% - 2.00%
Frequently Asked Questions
What is a good expense ratio?

A "good" expense ratio depends on the type of fund. For index funds and ETFs, look for expense ratios under 0.20%. For actively managed funds, anything under 1.00% is considered reasonable, with many top funds charging 0.50-0.75%.

How does the expense ratio affect my returns?

The expense ratio is deducted daily from the fund's assets. A 1% expense ratio reduces your return by 1% annually. Over 30 years, a 1% fee can consume nearly 25% of your potential ending balance compared to a 0.10% fee fund.

When is the expense ratio charged?

Expense ratios are calculated and accrued daily based on the fund's net assets. You never see a separate deduction on your statement; the fee is reflected in the fund's daily net asset value (NAV).

Are expense ratios negotiable?

For most retail investors, expense ratios are not negotiable. However, institutional share classes often have lower expense ratios for large investors. ETFs generally have lower expense ratios than mutual funds.

What's included in an expense ratio?

Expense ratios include management fees, administrative costs, marketing expenses (12b-1 fees), custodial fees, and other operational costs. They typically do not include brokerage commissions, load fees, or taxes.

How can I find a fund's expense ratio?

You can find a fund's expense ratio in its prospectus, on the fund company's website, or on financial data sites like Morningstar, Yahoo Finance, or your brokerage platform. Look for "Gross Expense Ratio" or "Net Expense Ratio."