ETF Expense Ratio Drag Calculator
See how an ETF's expense ratio chips away at returns. Pair your current balance with the fund's annual expense ratio to quantify today's fee drag and the compounded growth difference over your chosen horizon versus a zero-fee baseline.
Informational only. Investment returns are not guaranteed; consult a fiduciary advisor for personalized guidance.
Examples
- $250,000 balance at a 0.12% expense ratio with a 6% return over 10 years ⇒ Annual fee drag: $300.00 USD • 10-year portfolio difference: $5,042.69 USD (no-fee future value $447,711.92 vs. with fees $442,669.23).
- $1,000,000 balance at a 0.50% expense ratio, 7% return, 15-year horizon ⇒ Annual fee drag: $5,000.00 USD • 15-year portfolio difference: $187,190.53 USD (no-fee future value $2,759,031.54 vs. with fees $2,571,841.01).
FAQ
Does this include trading commissions or taxes?
No. The calculator isolates expense ratio drag. Commissions, bid-ask spread, and taxes would further reduce returns.
What if the expense ratio changes?
This tool holds the ratio constant. If you expect changes, rerun the calculation with the expected average ratio.
Why is the fee drag larger over time?
Fees cut both the current balance and future compounding base, so the gap versus a zero-fee baseline widens with each year.
Additional Information
- Result unit: USD of annual fee drag and the projected growth difference over the selected horizon.
- Defaults assume a 6.00% gross return compounded annually and a 10-year projection.
- Expense ratios reduce the effective return each year; this model treats the ratio as a constant fee taken from performance.