Expense Ratio Comparison Calculator
Compare the long-run cost of two funds with different expense ratios when the gross return is the same.
Quick answer
An expense ratio is a fund's yearly cost as a percentage of assets. This compares two funds with the same gross return, growing each at return minus its fee, and shows the difference in final balance.
Expense Ratio Comparison Calculator
Fund A Final Value
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Fund B Final Value
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Fund A Fees Paid
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Fund B Fees Paid
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Difference in Fees Paid
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Difference in Final Value
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Year-by-Year Comparison
| Year | Fund A (₹) | Fund B (₹) | Difference (₹) | Fees paid A (₹) | Fees paid B (₹) |
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Assumptions & method
- Each month: balance × (1 + gross return)^(1/12), then expense ratio ÷ 12 of the balance is deducted, then the contribution is added at month end.
- Both funds start with the same amount, receive the same contributions and earn the same gross return; only the expense ratio differs.
- Difference in final value = Fund A − Fund B (a negative number means Fund B ends higher). Fees paid are cumulative deductions.
- The gap in final value is larger than the gap in fees paid because fees also remove the growth they would have earned.
- Sales charges, trading costs, taxes, inflation and tracking differences are not included. The gross return is an assumption, not a forecast.
Results are estimates based on the figures you enter. They are not guarantees and not financial advice.
How expense ratios change your outcome
A fund's expense ratio is taken from its assets every year, which lowers the return you actually receive. If two funds earn the same gross return, the one with the lower ratio leaves more money working for you, and the extra money compounds in the following years. This calculator grows the same starting amount and monthly contributions in both funds, deducts each fund's ratio, and compares the results. It shows each final value, the fees each fund charged and a yearly chart, so you can see how much a higher fee costs and how much extra return it would need to justify.