Financial Calculators
Expense Ratio Impact Calculator
Every fund charges a small annual fee. Small numbers, compounded for decades, stop being small.
Cost of expenses over the period
₹22,80,058
the gap costs compound too
- Value at gross return
- ₹96,46,293
- Value after expenses
- ₹73,66,235
Every fund charges an expense ratio, deducted daily from the NAV. Costs matter, but so does what you get for them; the cheapest option is not automatically the best one.
The quiet line item that compounds
Every mutual fund deducts an expense ratio, a small annual percentage, daily from its NAV. You never see a bill, which is why few investors notice that the cost compounds exactly like a return does, only against you. This calculator shows an investment growing at the gross rate and at the net-of-expense rate side by side, and the gap between them.
The honest conclusion is nuanced: costs matter and deserve attention, but the cheapest fund is not automatically the right fund. What you receive for the cost, discipline, allocation, service and behaviour coaching, decides whether it is money well spent.
How the calculation works
Value at gross = P x (1 + gross rate)^t\nValue after expenses = P x (1 + gross rate - expense ratio)^t\nCost of expenses = the differenceWorked example: Rs 10,00,000 growing at a 12% gross return for 20 years reaches about Rs 96,46,293; at a 1.5% expense ratio the net value is about Rs 73,66,235. The expenses cost about Rs 22,80,058 over the period.
Frequently asked questions
Is a lower expense ratio always better?
All else equal, yes. But all else is rarely equal: category, strategy, and the quality of advice and service around the fund matter to the outcome too.
What is a typical expense ratio in India?
Regulated caps apply by category and fund size; equity funds commonly run between roughly 0.5% and 2% depending on plan and category. Check the current figure in the scheme documents.
Do direct plans avoid this?
Direct plans have lower expense ratios because they exclude distribution commission, and they also exclude distributor services. Our Disclosure page explains this choice transparently.
Does the calculator match my fund exactly?
It is a clean model that applies the expense as a constant annual drag. Real funds vary returns and expenses year to year, but the long-term logic holds.
Know what you pay. Know what you get.
We disclose costs plainly and earn them with service. Ask us anything about either.