Expense Ratio Cost Calculator
See how much a fund’s expense ratio costs you over time and how much it drags on returns.
How it works
Ending balance = amount × (1 + return − expense ratio)^years
A fund’s expense ratio quietly subtracts from your return every year, and compounding magnifies the gap over decades. Even a fraction of a percent becomes tens of thousands on a large, long-held balance.
Worked example
$100k at 7% for 30 years loses about $95k to a 0.5% expense ratio versus a zero-fee fund.
Frequently asked questions
What is a low expense ratio?
Broad index funds often charge 0.03–0.20%. Above ~0.5% is expensive for a passive fund.
Why does a small % cost so much?
The fee compounds against your whole balance every year, including the growth you would have earned on it.
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Educational estimate, not investment advice. Returns are assumptions, not guarantees — markets fluctuate and past performance does not predict the future.