How much will that added expense ratio potentially hurt your investment growth? Find out here with our interactive Expense Ratio Cost Calculator!
Comparing 2 similar ETFs or Mutual Funds and want to see how much an increase in expense ratios will inhibit your investment growth?
Simply enter 2 different expense ratios, along with basic investment information and find out.
Shown below is an example. Enter your own numbers in the grey boxes below and see the results.
Shocking isn’t it? Ready to find ways to find better, low-cost ETFs and Mutual Funds? Ready reduce your expense ratios?
- Check out our Fund Spotlight Series where we highlight low cost ETFs and Mutual Funds
Or check out tools like Motif Investing, where you can create your own “Motifs” (essentially, and ETF) for as little as $10 (and no expense ratios!)
Or see some cool things we have done with Motif Investing like:
This calculator has also been modified to consider AUM fees and expense ratios when dealing with financial advisors, here.
About this calculator:
The calculator computes an investment’s return using the Future Value function in Microsoft Excel. The “Cost” is derived by subtracting the Future Value function result factoring in the expense ratio from a Future Value function result that assumes zero cost.
In other words, if you input 6% for investment return and an expense ratio of 0.5%, the “Cost” is the difference between and 6% return and a 5.5% return over the period.
This assumes that any added expense ratio does not add any potential for out performance. This should only be used to compare similar investments.