Expense Ratio Impact Calculator
Compare the long-term impact of lower and higher investment expense ratios.
- Last reviewed
- July 8, 2026
- Cost
- Free to use
- Data
- Runs in your browser
Lower-Cost Ending Value
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Higher-Cost Ending Value
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Long-Term Difference
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First-Year Fee Gap
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Methodology
How this calculator handles inputs
This calculator uses the values you enter above and applies the formula explained in the guide below. Results update in the browser and are intended for quick planning, comparison, and sanity-checking.
- Use consistent periods, currencies, and units across inputs.
- Review any assumptions before using the result in a decision.
- Recalculate when rates, prices, tax rules, or business terms change.
Important note
This tool provides general planning information only. It is not tax, legal, financial, accounting, or investment advice. Check the current rules for your location and speak with a qualified professional before making a high-stakes decision.
Guide
How it works
Use this calculator to compare lower and higher expense ratios over time.
What this calculator does
The expense ratio impact calculator estimates how much more a lower-cost fund may be worth after years of compounding.
Expense Ratio Impact Formula
Ending Value = Investment x (1 + Gross Return - Expense Ratio)^Years
Example calculation
Compare a 0.05% fund with a 1.00% fund over 30 years to see the long-term difference.
When to use this calculator
- comparing funds
- evaluating index funds and ETFs
- understanding fee drag
- planning long-term investments
FAQs
Do small expense ratio differences matter?
They can. Small annual differences may compound into large long-term gaps.
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