Expense Ratio Calculator

Calculate the exact expense ratio of a mutual fund, ETF, or business operation to understand the true cost of managing your assets.

Total operating expenses USD Management fees, admin costs, 12b-1 fees Please enter valid total expenses

Average total assets USD Total Assets Under Management (AUM) Please enter positive total assets

Calculation Results

Expense Ratio

— %

This percentage is deducted annually from your invested assets.

How to use this calculator

Enter total operating expenses

Input the total costs associated with managing the fund or business, including management fees, administrative costs, and marketing expenses.

Enter average total assets

Input the total value of the assets under management (AUM) or the total business assets during the same period.

Review your expense ratio

The tool instantly calculates the percentage. It also breaks down exactly how much you are paying in fees per $10,000 invested.

Mutual Fund & ETF Expense Ratio Impact

Total Fund Assets	Total Operating Expenses	Cost per $10,000 Invested	Expense Ratio
$10,00,000	$1,000	$10	0.10%
$10,00,000	$5,000	$50	0.50%
$10,00,000	$7,500	$75	0.75%
$10,00,000	$10,000	$100	1.00%
$10,00,000	$15,000	$150	1.50%
$10,00,000	$20,000	$200	2.00%
$50,00,000	$5,000	$10	0.10%
$50,00,000	$25,000	$50	0.50%
$50,00,000	$37,500	$75	0.75%
$50,00,000	$50,000	$100	1.00%
$50,00,000	$75,000	$150	1.50%
$50,00,000	$1,00,000	$200	2.00%
$1,00,00,000	$10,000	$10	0.10%
$1,00,00,000	$50,000	$50	0.50%
$1,00,00,000	$75,000	$75	0.75%
$1,00,00,000	$1,00,000	$100	1.00%
$1,00,00,000	$1,50,000	$150	1.50%
$1,00,00,000	$2,00,000	$200	2.00%
$5,00,00,000	$50,000	$10	0.10%
$5,00,00,000	$2,50,000	$50	0.50%
$5,00,00,000	$3,75,000	$75	0.75%
$5,00,00,000	$5,00,000	$100	1.00%
$5,00,00,000	$7,50,000	$150	1.50%
$5,00,00,000	$10,00,000	$200	2.00%
$10,00,00,000	$1,00,000	$10	0.10%
$10,00,00,000	$5,00,000	$50	0.50%
$10,00,00,000	$7,50,000	$75	0.75%
$10,00,00,000	$10,00,000	$100	1.00%
$10,00,00,000	$15,00,000	$150	1.50%
$10,00,00,000	$20,00,000	$200	2.00%

Frequently asked questions

What is an expense ratio?

An expense ratio is a measure of what it costs an investment company to operate a mutual fund or ETF, expressed as a percentage of the fund's average net assets. It represents the annual fee charged to shareholders to cover management, administration, and marketing.

What is considered a good expense ratio?

For passively managed index funds and ETFs, a "good" expense ratio is generally below 0.20%. For actively managed mutual funds, expense ratios typically range between 0.50% and 1.50%. Ratios above 1.5% are generally considered high and will significantly drag down long-term returns.

How does the expense ratio affect my investment?

The expense ratio directly reduces your investment returns. For instance, if your fund yields an 8% return for the year but carries a 1% expense ratio, your net return is 7%. A 1% expense ratio means you pay $100 annually for every $10,000 invested.

Do I have to pay the expense ratio directly via a bill?

No. You do not receive a bill or write a check for the expense ratio. The fund company automatically deducts the fee from the fund's net assets daily. The impact is completely seamless, which is why investors must actively check the ratio before investing.

About this calculator

This expense ratio calculator helps investors, portfolio managers, and business owners measure operational efficiency. In the investment world, the expense ratio (ER) is arguably the most critical metric for evaluating the true long-term cost of holding a mutual fund or ETF.

The standard formula used to determine the expense ratio is:

Expense Ratio (%) = (Total Operating Expenses ÷ Average Total Assets) × 100

To help visualize the financial impact of these fees, the calculator also computes the exact annual cost per $10,000 invested. Because compounding works identically on fees as it does on returns, even a fraction of a percentage point difference in your expense ratio can cost you tens of thousands of dollars in lost portfolio growth over a 20-to-30-year investing horizon.