Expense Ratio Drag Calculator
Estimate how an expense ratio reduces compounding returns.
Calculate expense ratio drag calculator from clear inputs
Expense Ratio Drag Calculator gives a focused worksheet for finance & money questions where a quick deterministic estimate is more useful than a spreadsheet. The expense ratio drag calculator fields mirror the variables in its formula, and the output separates the main result from supporting values so you can sanity-check this calculation before reusing it.
100000 over 20 years at 6 percent gross and 0.75 percent fees loses about 42459.12 to fee drag.
Keep the estimate private in your browser
For Expense Ratio Drag Calculator, every calculation runs in your browser with no upload, account, cookie, live lookup, or server-side storage. The expense ratio drag calculator result is best treated as a planning number because the real-world constraints behind this estimate can change the answer. Adjust the expense ratio drag calculator assumptions and confirm important decisions against the relevant source of truth for that exact situation.
Frequently Asked Questions
How is fee drag calculated?
The balance compounds at the gross return and again at the gross return minus the expense ratio; the difference is fee drag. $100,000 over 20 years at 6% with a 0.75% fee loses $42,459.12.
Why does a small fee cost so much?
The fee is taken every year from a growing balance, and the money removed never compounds. The drag grows faster than the fee rate suggests over long periods.
What is a low expense ratio?
Broad index funds and ETFs often charge 0.03% to 0.20%, while actively managed funds commonly charge 0.5% to 1% or more. Compare funds tracking the same market.
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