About this calculator

How-to: enter your initial investment, annual contribution, gross annual return (before fees) and the expense ratios of the two funds you want to compare. Net return = gross return − expense ratio. Over 30–40 years, a 1% expense-ratio difference can consume 20–30% of terminal wealth (the 'tyranny of compounding costs' — Bogle 2010).

Frequently asked questions

What's a 'low' expense ratio?

Broad-market index ETFs (Vanguard VTI, iShares CSPX, HSBC MSCI World) charge 0.03–0.20%. 'Active' mutual funds average 0.6–1.5%. Above 1% is expensive by 2025 standards.

Does a small ER difference really matter?

Over 30 years at 7% gross return, a 1% ER difference reduces terminal wealth by ~24%. On a €500k portfolio, that's €120k. Fees compound just like returns.

What about tax drag?

Beyond ER, watch fund turnover (higher turnover = more taxable distributions) and use tax-advantaged accounts (ISA, 401(k), IRA, PEA) first.

What does the Stock/ETF Investment Expense Ratio Impact Calculator do?

See how much of your future wealth is eaten by ETF or mutual-fund expense ratios — compare a low-cost index fund against a higher-cost active fund side by side. How-to: enter your initial investment, annual contribution, gross annual return (before fees) and the expense ratios of the two funds you want to compare. Net return = gross return − expense ratio. Over 30–40 years, a 1% expense-ratio difference can consume 20–30% of terminal wealth (the 'tyranny of compounding costs' — Bogle 2010).

Is the Stock/ETF Investment Expense Ratio Impact Calculator free to use?

Yes. Every calculator on Calcurly.com is free, works in your browser without sign-up, and can be embedded on your own website.

How accurate is the Stock/ETF Investment Expense Ratio Impact Calculator?

Results are calculated in real time using industry-standard formulas. Treat the output as a well-informed estimate — always cross-check with local regulations, product datasheets, or a qualified finance professional before committing to a purchase or a job.

What inputs does the Stock/ETF Investment Expense Ratio Impact Calculator need?

Enter values for: Starting balance, Annual contribution, Gross annual return (%), Fund A expense ratio (%), Fund B expense ratio (%), Years. Sensible defaults are pre-filled where possible so you can start with a single change.

Can I embed the Stock/ETF Investment Expense Ratio Impact Calculator on my own website?

Yes — copy the iframe snippet at the bottom of this page, or use the Embed Generator to customise the size. The embedded version stays in sync with the live calculator on Calcurly.com.