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About this tool
See how much a mutual fund expense ratio quietly eats from your long-term corpus, and what a direct plan saves.
Expense Ratio Impact Calculator shows the money a mutual fund's annual charge quietly removes from your corpus over a long holding period. Enter a SIP or lumpsum, a gross return, and two expense ratios — typically a regular plan against its direct plan — and it compares the final corpus under each, plus a zero-cost benchmark. Because the fee is charged on the whole portfolio every year, the loss compounds far beyond the headline percentage.
Open Expense Ratio Impact Calculator on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Compare any pair of expense ratios plus a zero-cost benchmark in one view.
Switch modes to model a monthly instalment or a one-time investment with the same maths.
A table shows how the difference grows each year, which is where the real damage shows up.
It is the fund's annual running cost — management fee, administration and distribution charges — expressed as a percentage of assets. It is deducted from the scheme daily, so the NAV you see is already net of it.
SEBI caps total expense ratio on a sliding scale by scheme size: currently up to 2.25% for open-ended equity schemes and 2.00% for other open-ended schemes, with lower caps as assets grow. Index funds and ETFs have much tighter limits.
Direct plans skip the distributor commission, so they typically run 0.5-1.2 percentage points cheaper than the regular plan of the very same scheme with the same portfolio and fund manager.
A switch is a redemption and a fresh purchase, so it can trigger capital gains tax and any exit load — weigh those one-time costs against the ongoing saving this calculator shows. This is informational, not investment advice.
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