What is an expense ratio?
A fund’s expense ratio is the annual fee, expressed as a percentage of assets, charged to cover the fund’s operating costs. It’s deducted automatically from returns, so investors rarely see it as a separate charge.
The formula
Annual Fee Cost = Investment Amount × Expense Ratio. Multiplying by the number of years held gives a simple estimate of total fees paid over that period (not accounting for the fee being applied to a growing or shrinking balance).
This calculator is for general investment-cost education, not investment advice.
Last reviewed August 2026