Expense Ratio Calculator
Expense Ratio: 0%
Expense Ratio Calculator – Know Your Mutual Fund Charges
Looking to understand how much your mutual fund is really costing you? Our free Expense Ratio Calculator helps you find out the annual fees deducted by your mutual fund company in seconds. This tool gives you a clear idea of how the expense ratio affects your investment returns — so you can make smarter financial decisions.
📌 What is an Expense Ratio?
The expense ratio is a fee charged annually by mutual fund houses to manage your investments. It is expressed as a percentage of your total investment and covers costs such as:
- Fund management fees
- Administrative charges
- Distribution and marketing expenses
The higher the expense ratio, the lower your net return. That’s why using an Expense Ratio Calculator is important before investing in any mutual fund.
🎯 Why Use an Expense Ratio Calculator?
Using this tool helps you:
- 💰 Know exactly how much you’re paying every year
- 📊 Compare funds based on charges
- 📉 Understand the impact of charges on long-term returns
- ⏱️ Save time and avoid manual calculations
🧠 How is Expense Ratio Calculated?
Here’s the simple formula used by the Expense Ratio Calculator:
Annual Expense = (Expense Ratio ÷ 100) × Investment Amount
Example:
- Investment Amount = ₹1,00,000
- Expense Ratio = 1.5%
- Annual Expense = ₹1,500
This amount is deducted yearly from your investment, reducing your effective returns.
📈 Expense Ratio vs Investment Returns
Even a 0.5% change in expense ratio can make a big difference over time, especially in long-term investments like SIPs or retirement funds.
| Expense Ratio | 10-Year Value (₹1 Lakh) | Difference |
|---|---|---|
| 0.5% | ₹1,63,862 | — |
| 1.5% | ₹1,53,539 | ₹10,323 |
That’s why choosing a low-cost mutual fund can significantly boost your wealth in the long run.
✔️ Key Takeaways
Over long-term horizons, even a small % saved annually can add up to lakhs.
Use our Expense Ratio Calculator before investing in any fund.
Always compare expense ratios for direct vs. regular plans.
A lower expense ratio doesn’t guarantee better returns — also consider performance.