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. Fórmula Matemática e Identidade de Precificação

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

2. Como Utilizar e Parâmetros de Entrada

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. Premissas Prudenciais e Limitações do Modelo

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. Perguntas Frequentes e Notas de Risco (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%.

Como as equipes de risco podem auditar os resultados da «ETF expense ratio calculator»?

A ETFYield Lab publica a equação exata e as convenções de cálculo nesta página. Analistas podem reproduzir os cálculos em Python/Pandas e verificar a licença da contraparte na central de verificação da ETFYield Lab.

Aviso legal: Apenas para fins educacionais e de pesquisa quantitativa, não constituindo recomendação de investimento. Verifique números importantes de forma independente.