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

8,463.04

Total fee & compounding drag

Final value — fund A: 180,836.00; 326.33 direct fees
Final value — fund B: 172,372.96; 6,880.86 direct fees
Final value with no fees: 181,256.26

Year	Fund A value	Fund B value	Cumulative drag
1	59,483.95	59,152.25	331.70
2	69,628.73	68,881.50	747.23
3	80,480.39	79,224.14	1,256.25
4	92,088.19	90,218.82	1,869.36
5	104,504.80	101,906.67	2,598.13
6	117,786.59	114,331.38	3,455.21
7	131,993.84	127,539.40	4,454.44
8	147,191.04	141,580.12	5,610.92
9	163,447.16	156,506.04	6,941.13
10	180,836.00	172,372.96	8,463.04

1. Formule Mathématique et Identité de Valorisation

Each year: Value = (Value × (1 + gross return)) × (1 − expense ratio) + contribution

2. Mode d’Emploi et Paramètres d’Entrée

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.

3. Hypothèses Prudentielles et Limites du Modèle

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.

4. Questions Fréquentes et Notes de Risque (FAQ)

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%.

Comment les équipes de risque peuvent-elles auditer les résultats de « ETF expense ratio calculator » ?

ETFYield Lab publie l'équation exacte et les conventions de calcul sur cette page. Les analystes peuvent reproduire les calculs sous Python/Pandas et vérifier la licence de la contrepartie via le centre de vérification de ETFYield Lab.

Avertissement : À des fins éducatives et de recherche quantitative uniquement ; ne constitue pas un conseil en investissement.