Expense Ratio Calculator
Calculate the expense ratio of a mutual fund or ETF to understand the cost of investing.
Published by:
isCalculator Editorial Team
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How to use this tool?
Follow these steps to calculate the expense ratio of a fund:
- Enter Total Annual Expenses – Input the total annual operating expenses of the fund in dollars (e.g., 50000). Must be a positive number.
- Enter Average Net Assets – Input the average net assets of the fund over the period in dollars (e.g., 10000000). Must be greater than zero.
- Click "Calculate Expense Ratio" – The button will process your inputs and display the result.
- Read the Result – The expense ratio is shown as a percentage (e.g., 0.5000%). Below it, you'll see the formula and the step-by-step calculation.
Formula: Expense Ratio = (Total Annual Expenses / Average Net Assets) × 100%
Note: All values must be in the same currency (USD). The calculator uses exact numbers, so ensure your inputs are accurate.
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Frequently Asked Questions
An expense ratio is the annual fee that all funds charge their shareholders, expressed as a percentage of the fund's average net assets.
Expense ratio = (Total annual fund expenses / Average net assets of the fund) × 100%.
A lower expense ratio means lower costs for investors, which can lead to higher net returns over time.
