Mutual Fund Calculator
Calculate mutual fund growth with regular contributions, net of the annual expense ratio.
A 0.6% expense ratio doesn't sound like much, but compounded over 20 years it quietly costs you $18,150.70.
- Lost to Fees Over Time$18,150.70
- Net Annual Return7.4%
About the Mutual Fund Calculator
An expense ratio looks tiny on a fund fact sheet — often well under 1% — which is exactly why it's easy to ignore, but it's charged every single year on your entire balance, not just what you contribute, so it compounds against you the same way returns compound for you. This calculator subtracts the expense ratio from your expected return and shows what that quietly costs you in dollar terms over the full time horizon.
It's built for the decision a lot of people never actually run the numbers on: comparing a low-cost index fund against a similar actively managed fund with a higher expense ratio, or checking what an old 401(k)'s fund lineup is really costing you compared to a cheaper option you could roll it into.
Your contribution amount, fund choice and return assumptions stay on your device — nothing is sent to a server or logged, so you can compare real funds you're actually deciding between without creating an account anywhere.
Frequently asked questions
How much does a 1% expense ratio really cost over time?
More than it sounds like — a 1% annual fee compounds against your balance for decades, and on a long horizon it can consume a meaningful fraction of your total growth, not just 1% of a single year's return. This calculator's 'lost to fees' figure shows that exact dollar cost for your own numbers.
What's considered a low expense ratio for a mutual fund?
Broad index funds commonly charge well under 0.2%, while actively managed funds often run from around 0.5% up past 1%. There's no universal 'good' number, but a materially higher fee needs to be justified by materially better performance, which is uncommon over long periods.
Does the expense ratio come out of my account as a separate charge?
No — it's typically deducted directly from the fund's returns before the price you see, not billed to you separately. That's exactly why it's easy to overlook: you never see a line-item fee, you just quietly earn a lower return than the fund's gross performance.
Is a higher expense ratio ever worth it?
Sometimes, if a fund gives you access to a strategy or asset class you genuinely can't get cheaply elsewhere. But for a plain diversified stock or bond fund, a low-cost option usually performs comparably or better over the long run once fees are accounted for.
Are there other fund costs besides the expense ratio?
Yes — sales loads (front-end or back-end commissions), trading costs inside the fund, and account or advisory fees from wherever you hold it can all add up separately from the expense ratio itself. This calculator only models the expense ratio, so a fund with a load could cost more than shown here.
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