Calculator
ETF expense ratio calculator
An ETF’s expense ratio is deducted from the fund every year, so small differences compound into large sums. Compare two funds side by side to see the cost in money, not just basis points.
Cost of the pricier fund
45,764.75
Difference in final value
- Final value — fund A
- 508,769.44
- 3,609.96 in fees
- Final value — fund B
- 463,004.69
- 29,081.32 in fees
- Final value with no fees
- 515,180.04
Formula
Each year: Value = (Value × (1 + gross return)) × (1 − expense ratio) + contribution
How to use it
Enter your starting amount, a yearly contribution, the expected gross return before fees and the two expense ratios to compare.
Fees are taken from the grown balance each year, so you see both the direct fee and the growth it would have earned.
Assumptions and limits
- Contributions are added at the end of each year. Returns are constant and before tax.
- Ignores trading spreads, tracking difference and securities-lending income, which can move a fund’s real cost above or below its stated ratio.
Common questions
Is a 0.1 percentage-point difference worth worrying about?
Over long horizons, yes. On £/$/€100,000 growing at 7% for 30 years, 0.1 points of extra cost reduces the final value by roughly 2–3%.
For education only, not investment advice. Results depend entirely on the inputs and assumptions above; check important numbers independently.