Expense Ratio Impact

See how a "small" difference in expense ratio can cost you lakhs over time.

Investment Details

%
Before expense ratio deduction
Years

Expense Ratio Comparison

%
Expense ratio of cheaper fund
%
Expense ratio of costlier fund

Why Expense Ratio Matters

Expense ratio is deducted from your returns daily. Over long periods, even a 1% difference compounds into a massive gap.

The Hidden Cost

0

You lose 0% of your potential wealth by choosing the higher expense ratio fund.

Low-Cost Fund (0.5%)

Net Return: %

0

High-Cost Fund (1.5%)

Net Return: %

0

Wealth Growth Comparison

Documentation

The Power of Low Costs

Expense ratio is the annual fee charged by mutual funds to cover management, administrative, and operational costs. It's expressed as a percentage of your investment.

Pro Tip

"A 1% difference in expense ratio can cost you 20-30% of your final corpus over 20+ years."

The Formula

Net Return = Gross Return - Expense Ratio
Low-cost: 12% - 0.5% = % | High-cost: 12% - 1.5% = %

The difference of 0% annually compounds into 0 over 20 years.

Last Updated: January 2026

Disclaimer: Past performance does not guarantee future results. Expense ratios can change over time. Please read the fund documents carefully before investing.

How to Use

About the Expense Ratio Calculator

What it calculates

This expense ratio calculator helps you model financial decisions with accurate formulas and clear outputs. See how fund expense ratios impact your long-term wealth.

When to use it

Use when comparing loan terms, investment returns, taxes, or savings scenarios before making money decisions.

Example

Adjust the inputs above to model your specific scenario with the Expense Ratio Calculator.

Explore More

Related Calculators