Enter your investment details above and click Calculate to see the full cost of your fund fees.
An expense ratio is the annual fee a fund charges you to cover its operating costs. It is shown as a percentage of your invested assets. A 0.50% expense ratio means you pay 50 cents per year for every $100 you hold in the fund.
The fee is not billed directly. Instead, it is automatically taken from the fund's daily net asset value (NAV), so your balance grows slightly slower than the raw market return each day.
Expense ratios cover things like portfolio management, administration, legal and compliance costs, and in some cases, marketing (called 12b-1 fees). The lower the expense ratio, the more of the fund's returns stay in your pocket.
| Fund Type | Typical Range |
|---|---|
| Index ETF | 0.03% – 0.20% |
| Index Mutual Fund | 0.05% – 0.50% |
| Active Equity Fund | 0.50% – 1.50% |
| Active Bond Fund | 0.40% – 1.00% |
| Hedge / Alternative | 1.50% – 2.00%+ |
Expense ratios seem small in isolation, but compounding turns small annual fees into large lifetime costs. Consider two identical funds with a $100,000 starting balance and an 8% gross return over 30 years:
This is why financial experts consistently recommend choosing low-cost index funds over high-fee actively managed funds for most long-term investors. The fee drag compounds year after year, just like growth compounds — but in the wrong direction.
Even a 0.50% difference in expense ratio adds up significantly over decades. Use this calculator to see the exact dollar impact for your own investment. To measure how your overall investment has performed after fees, you can also calculate your percentage return to see the real gain or loss on any position.
The expense ratio is not the only fee you might pay when investing in a fund. Here are the main charges to be aware of:
This calculator focuses on the expense ratio because it is the most universal and the biggest ongoing cost for most investors.
There are practical steps any investor can take to lower the drag from fund fees and keep more money growing.
When in doubt, check the fund's Key Investor Information Document (KIID) in the UK or the fund prospectus in the US — both are required to show the annual ongoing charge clearly. Keeping fund costs low also works best when paired with good overall money habits — a budget planner can help you track spending and free up more to invest.
How much you pay each year in fees at different portfolio sizes and expense ratios.
| Balance ($) | 0.03% Ultra-low ETF |
0.10% Index ETF |
0.20% | 0.50% | 1.00% Active fund |
1.50% |
|---|
Annual fee = Balance × Expense Ratio. Currency shown as $.
Total money lost to fees over 30 years for different starting balances, compared to a 0% expense ratio benchmark.
| Starting Balance | 0.05% lost | 0.20% lost | 0.50% lost | 1.00% lost | 1.50% lost | No-fee final value |
|---|
Based on 8% annual gross return, 30-year period, no additional contributions. "Lost" = difference vs 0% expense ratio.
Portfolio value after N years with $50,000 invested at 8% gross return — comparing 0.05% vs 1.00% expense ratios.
| Years | 0.05% (Low Cost) Final Value |
1.00% (High Cost) Final Value |
Extra Cost of High Fee | % Less with High Fee |
|---|
Starting balance: $50,000. Gross return: 8% p.a. No additional contributions.
Typical annual ongoing charges for common investment fund categories around the world (approximate industry averages).
| Region / Market | Index ETF | Active Equity | Active Bond | Target Date | Notes |
|---|---|---|---|---|---|
| 🇺🇸 United States | 0.03–0.20% | 0.60–1.20% | 0.40–0.90% | 0.10–0.15% | World's lowest-cost market |
| 🇬🇧 United Kingdom | 0.07–0.25% | 0.75–1.50% | 0.50–1.00% | 0.20–0.45% | OCF / Ongoing Charges Figure |
| 🇪🇺 European Union | 0.07–0.30% | 1.00–2.00% | 0.60–1.20% | 0.30–0.60% | MiFID II disclosure rules apply |
| 🇨🇦 Canada | 0.06–0.25% | 1.50–2.50% | 0.80–1.50% | 0.20–0.40% | High active-fund MERs historically |
| 🇦🇺 Australia | 0.04–0.20% | 0.80–1.50% | 0.50–1.00% | 0.20–0.50% | Super fund fees also apply |
| 🇮🇳 India | 0.05–0.20% | 1.00–2.00% | 0.50–1.50% | n/a | SEBI regulates TER caps |
| 🇯🇵 Japan | 0.05–0.25% | 0.80–1.80% | 0.50–1.00% | 0.20–0.40% | NISA accounts popular |
| 🇸🇬 Singapore | 0.07–0.30% | 1.00–2.00% | 0.60–1.20% | 0.20–0.50% | CPF-IS rules apply |
| 🇧🇷 Brazil | 0.10–0.50% | 1.50–3.00% | 1.00–2.00% | n/a | Higher costs due to market size |
These are approximate industry averages. Actual fees vary by fund and platform. Always verify with the fund's official documents before investing.
The minimum annual outperformance an active fund must deliver just to match a cheaper passive fund over different time horizons.
| Active Fund ER | vs 0.05% Index Extra needed |
vs 0.10% Index | vs 0.20% Index | Probability of delivering this* |
|---|---|---|---|---|
| 0.50% | +0.45%/yr | +0.40%/yr | +0.30%/yr | ~40–50% |
| 0.75% | +0.70%/yr | +0.65%/yr | +0.55%/yr | ~30–40% |
| 1.00% | +0.95%/yr | +0.90%/yr | +0.80%/yr | ~20–30% |
| 1.25% | +1.20%/yr | +1.15%/yr | +1.05%/yr | ~15–25% |
| 1.50% | +1.45%/yr | +1.40%/yr | +1.30%/yr | ~10–20% |
| 2.00% | +1.95%/yr | +1.90%/yr | +1.80%/yr | ~5–10% |
* Probability estimates based on long-run SPIVA data showing active fund underperformance rates over 15–20-year periods. Past data does not guarantee future results.
Starting with $100,000 at 8% gross return — how your final balance differs based on the expense ratio you pay.
| Years | 0.03% | 0.10% | 0.25% | 0.50% | 1.00% | 1.50% |
|---|
Starting balance: $100,000. 8% annual gross return. No additional contributions. Fee deducted annually from balance.