INVESTING CHANNEL
Expense Ratio Calculator
Calculate the total annual dollar cost of holding an ETF or Mutual Fund.
Calculator Variables
Calculation Overview
Calculate the total fees paid to a mutual fund or ETF based on its annual expense ratio.
Mathematical Model & Formula
Annual Fee = Portfolio Value * Expense Ratio %
Multiplies the asset value by the fund expense ratio to find the yearly fee drag.
Variables Defined:
- Expense Ratio: Percentage fee charged by fund managers
Worked Example Scenario
Scenario: ETF balance of $10,000 with a 0.25% expense ratio.
- Fee = $10,000 * 0.0025
Result: Annual cost is $25.
Frequently Asked Questions
What is a good expense ratio?
Generally, passive index ETFs should have expense ratios under 0.15%. Active mutual funds often exceed 0.75%.