Expense Ratio Calculator

Discover how much of your investment goes towards fees and expenses, empowering you to make informed financial decisions. Maximize your returns by minimizing expenses – every percentage point counts!

Result Future Value $0 Total Cost $0
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More Calculators: Compound Calculator, Present Value, Internal Rate of Return (IRR), Sharpe Ratio

Expense Ratio Formula

            Expense Ratio = Total Fund Costs / Total Fund Assets

Expense Ratio Meaning

The expense ratio signifies the proportion of a fund/ETF used for covering expenses and managerial salaries.

When the expense ratio is higher, more money is retained by fund managers, leading to diminished returns for investors.

Conversely, a lower expense ratio ensures investors retain a larger share of their investment, thereby maximizing potential earnings.

Expense Ratio Example

Let's consider an expense ratio of 1%.

If you have a portfolio worth $100 in an fund/ETF for the year, the fund managers deduct $1 for expenses, leaving you with $99.

Conversely, if your portfolio value rises to $200, the managers would deduct $2, leaving you with $198.