Expense Ratio Cost Calculator
See the long-term cost of a fund's expense ratio.
Enter your values
Enter the starting investment in $.
Enter the years invested in years.
Enter the gross annual return in %.
Enter the fund a expense ratio in %.
Enter the fund b expense ratio in %.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Fund A ending value (0.9% fee)
- $277,783.71
- Fund B ending value (0.05% fee)
- $338,482.46
- Total cost of higher fees
- $60,698.75
- Percent of Fund A's growth lost to fees
- 21.04%
Quick answer
A small difference in expense ratio compounds into a large dollar cost over long holding periods, since fees are deducted from your returns every single year.
Cost drag compounds like a negative return applied annually to the account balance
At a glance
| What it does | See the long-term cost of a fund's expense ratio. |
|---|---|
| Category | Investing |
| Inputs needed | Starting investment, Years invested, Gross annual return, Fund A expense ratio, Fund B expense ratio |
| Main output | Fund A ending value (0.9% fee) |
| Formula | Cost drag compounds like a negative return applied annually to the account balance |
| Cost | Free — no sign-up, no download |
How to use the Expense Ratio Cost Calculator
- 1Enter your starting balance and how long you'll stay invested.
- 2Enter the gross return you expect before fees.
- 3Compare two expense ratios to see the dollar impact over your time horizon.
Inputs explained
- Starting investment($)
- Enter the starting investment in $.
- Years invested(years)
- Enter the years invested in years.
- Gross annual return(%)
- Enter the gross annual return in %.
- Fund A expense ratio(%)
- Enter the fund a expense ratio in %.
- Fund B expense ratio(%)
- Enter the fund b expense ratio in %.
Worked example
Using the values the calculator loads with:
Inputs
- Starting investment50000 $
- Years invested25 years
- Gross annual return8 %
- Fund A expense ratio0.9 %
- Fund B expense ratio0.05 %
Results
- Fund A ending value (0.9% fee)$277,783.71
- Fund B ending value (0.05% fee)$338,482.46
- Total cost of higher fees$60,698.75
- Percent of Fund A's growth lost to fees21.04%
Frequently asked questions
Why does a 1% fee matter so much?
Fees compound against you every year, just as returns compound for you — small annual drags snowball over decades.
What's a reasonable expense ratio?
Many broad index funds charge under 0.10%, while actively managed funds often charge 0.5-1.5% or more.
What do I need to enter into the Expense Ratio Cost Calculator?
Just 5 values: starting investment, years invested, gross annual return, fund a expense ratio, fund b expense ratio. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Expense Ratio Cost Calculator work out the answer?
A small difference in expense ratio compounds into a large dollar cost over long holding periods, since fees are deducted from your returns every single year. It applies the formula Cost drag compounds like a negative return applied annually to the account balance and shows the working so you can check each step by hand.
Is the Expense Ratio Cost Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.