Expense Ratio Calculator
What fund fees cost you over time.
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This expense ratio calculator shows how much a mutual fund’s yearly fee takes from your returns over time. Compare two expense ratios, such as a direct and a regular plan of the same fund, or an index fund and an active fund. Enter your SIP or lumpsum and the expected return; it shows the ending value of each and the difference in rupees.
What is a Expense Ratio Calculator?
The expense ratio, or Total Expense Ratio (TER), is the yearly fee a mutual fund charges to manage your money, expressed as a percentage of assets. It is deducted from the fund’s NAV every day, so you never see a bill, but it reduces your returns every year.
Direct plans have a lower expense ratio than regular plans of the same fund because they don’t pay distributor commission. Index funds usually cost less than actively managed funds. A 1% difference sounds small, but over 20 years it can cost lakhs. This expense ratio calculator shows how much.
How does the Expense Ratio Calculator work?
The calculator reduces the expected return by each fund’s expense ratio, converts it to a monthly rate and grows your SIP and lumpsum for the chosen years. The difference between the two ending values is the cost of the higher fee.
How to use the Expense Ratio Calculator step by step
- Enter your monthly SIP and any lumpsum.
- Enter the expected return before fees.
- Enter the two expense ratios.
- Choose the number of years.
- Read the cost of the higher fee.
- Check the 5-year table.
Expense Ratio Calculator example with real numbers
You invest ₹10,000 a month for 20 years in a fund whose direct plan charges 0.6% and regular plan 1.6% a year, and the portfolio earns 12.5% before fees.
| Example input | Value |
|---|---|
| Monthly SIP | ₹10,000 |
| One-time lumpsum (optional) | ₹0 |
| Expected return before fees | 12.5% |
| Expense ratio: fund A (e.g. direct) | 0.6% |
| Expense ratio: fund B (e.g. regular) | 1.6% |
| Years | 20 years |
| Example output | Value |
|---|---|
| Extra cost of the higher fee | ₹10,29,121 |
| Total invested | ₹24,00,000 |
| Value with 0.60% fee | ₹90,88,159 |
| Value with 1.60% fee | ₹80,59,038 |
| Difference as share of fund A | 11.3% |
The direct plan grows to ₹90,88,159 and the regular plan to ₹80,59,038. The expense ratio calculator shows the extra 1% fee costs you ₹10,29,121, about 11.3% of the direct plan’s value.
Key features of this Expense Ratio Calculator
- Two funds or plans side by side
- SIP and lumpsum together
- Cost in rupees and percent
- 5-year milestones
- Works for any fund type
Who should use the Expense Ratio Calculator?
Who is this Expense Ratio Calculator for?
- Mutual fund investors in regular plans
- People choosing between index and active funds
- Advisers explaining fees
- New investors
Practical use cases
- Seeing the cost of a regular plan
- Comparing an index fund with an active fund
- Deciding whether to switch to direct
- Explaining fees to family
Key benefits
- Eye-opening: fees in rupees.
- Fair comparison: same gross return.
- Long-term: up to 40 years.
- Simple: few inputs.
Tips for better results
- Check the fund’s factsheet or AMFI’s website for the current TER.
- Switching from regular to direct is a redemption and can trigger tax and exit load.
- A low fee helps, but fund quality and suitability matter too.
- Advice has value; if you need it, a fee-only adviser can be cheaper than commissions.
Common mistakes to avoid
- Ignoring a 1% fee difference.
- Switching plans without checking tax.
- Choosing a fund only because it is cheap.
- Forgetting that TER can change.
Limitations of this Expense Ratio Calculator
- It assumes constant returns and fees.
- It does not include exit loads or taxes.
- Real funds may have different gross returns too.
Expense Ratio Calculator vs other ways to calculate
| Fund type | Typical TER |
|---|---|
| Index fund / ETF (direct) | 0.05–0.5% |
| Active equity (direct) | 0.5–1% |
| Active equity (regular) | 1.2–2% |
| Debt fund (direct) | 0.1–0.5% |
To see what a SIP grows to, use the SIP calculator. To check real returns on your holdings, use the XIRR calculator.
Privacy and data handling
This Expense Ratio Calculator runs entirely in your browser. The numbers you type are not sent to Qorico or stored on any server, and nothing is saved after you close the page. The Copy and Download buttons create the result on your own device. If the page has analytics turned on, it may count that a calculation happened, but it does not record the values you entered.
Expense Ratio Calculator FAQs
What is an expense ratio?
The yearly fee a mutual fund charges, as a percentage of assets, deducted from the NAV daily.
What is the difference between direct and regular plans?
Same fund and portfolio, but regular plans pay distributor commission, so their expense ratio is higher.
How much does a 1% expense ratio cost over 20 years?
On ₹10,000 a month at 12.5% gross, about ₹10 lakh.
What is a good expense ratio?
Lower is better for the same fund. Index funds often charge under 0.3%; active equity direct plans around 0.5–1%.
Where can I see a fund's expense ratio?
In the fund’s factsheet, the AMC website or AMFI’s TER disclosures.
Should I switch from regular to direct?
It can save fees, but switching is a sale for tax purposes and may attract exit load. Check both first.
Related tools
Sources and references
We checked the method and the current figures used in this Expense Ratio Calculator against these official and primary sources:
- AMFI: Association of Mutual Funds in India
- AMFI: Total Expense Ratio disclosures
- SEBI Investor Website
- Mutual Funds Sahi Hai: AMFI investor education
Written and reviewed by the Qorico Team
