Mutual Fund Expense Ratio Calculator

A mutual fund has costs for running and managing the scheme. These costs are charged through the scheme's expense ratio.

You do not usually pay this as a separate bill. The scheme NAV is calculated after deducting scheme expenses, so the cost reduces the value that remains invested.

The calculator keeps your investment amount, time and before-cost growth assumption the same. It changes only the expense ratio.

For the illustration, the annual growth assumption and annual expense ratio are converted into daily factors. For a monthly investment, the resulting annual rate is converted to an equivalent monthly rate and each monthly amount is treated as being added at the end of the month.

The result is not a statement of the exact fees charged by an AMC. It shows the possible difference in final value, including the effect of lower compounding over time.

A mutual fund's published NAV already reflects scheme expenses. So if you use a published fund return as the growth number and then apply the expense ratio again, you may count the cost twice.

For this calculator, use a separate before-cost growth assumption only to compare the two expense ratios. It is an illustration, not an expected return.

Expense ratios can change. Check the latest expense ratio shown in the scheme documents or on the fund house website before entering a number.

A lower expense ratio does not by itself tell you which fund will perform better. Fund returns, portfolio, risk, tracking difference, taxes, exit load and other factors can also matter.

This calculator does not recommend a mutual fund, Direct plan, Regular plan or any return assumption. It only compares the numbers you enter.

No phone number, email or PAN is needed. The calculation runs in your browser.