Expense Ratio Calculator
What a mutual fund's expense ratio costs you over the years, for a lump sum or a SIP, and the gap between a direct and a regular plan. Pick any fund to fill in its current expense ratios from AMFI.
An expense ratio is the yearly fee a mutual fund takes out of your money, as a percentage of what you hold. On ₹10 lakh growing at 12% a year for 20 years, a 0.5% expense ratio leaves ₹88,20,584 and a 1.5% expense ratio leaves ₹73,66,235: the extra 1% a year costs ₹14,54,349.
| Category | Funds | Median TER, direct | Median TER, regular |
|---|---|---|---|
| Dividend Yield | 9 | 1.12% | 2.15% |
| ELSS (tax saver) | 37 | 1.10% | 2.15% |
| Flexi Cap | 37 | 0.89% | 2.12% |
| Focused | 27 | 1.08% | 2.24% |
| Large & Mid Cap | 26 | 1.02% | 2.04% |
| Large Cap | 30 | 1.05% | 2.20% |
| Mid Cap | 28 | 0.93% | 2.02% |
| Multi Cap | 23 | 0.93% | 2.12% |
| Sectoral / thematic | 142 | 1.15% | 2.25% |
| Small Cap | 25 | 0.83% | 1.97% |
| Value | 21 | 1.20% | 2.28% |
| Index funds: Debt Index | 13 | 0.18% | 0.40% |
| Index funds: Nifty 50 Index | 16 | 0.22% | 0.51% |
| Index funds: Nifty Midcap 150 Index | 6 | 0.36% | 0.95% |
| Index funds: Nifty Next 50 Index | 13 | 0.36% | 0.87% |
| Index funds: Nifty Smallcap 250 Index | 6 | 0.38% | 0.92% |
| Index funds: Other Equity Index | 95 | 0.25% | 0.51% |
| Index funds: Sensex Index | 6 | 0.23% | 0.47% |
| Aggressive Hybrid | 29 | 1.07% | 2.19% |
| Arbitrage | 26 | 1.45% | 2.06% |
| Balanced Advantage | 30 | 1.01% | 2.27% |
| Conservative Hybrid | 18 | 0.99% | 1.83% |
| Equity Savings | 20 | 1.23% | 2.12% |
| Multi Asset Allocation | 15 | 0.69% | 1.78% |
| 10-year Constant Maturity Gilt | 6 | 0.30% | 0.49% |
| Banking and PSU | 20 | 0.35% | 0.71% |
| Corporate Bond | 21 | 0.34% | 0.68% |
| Credit Risk | 13 | 0.80% | 1.51% |
| Dynamic Term | 21 | 0.54% | 1.32% |
| Floating Interest Rates | 12 | 0.28% | 0.64% |
| Gilt | 21 | 0.50% | 1.17% |
| Liquid | 35 | 0.14% | 0.24% |
| Long Term | 7 | 0.33% | 0.78% |
| Medium Term | 12 | 0.70% | 1.31% |
| Medium to Long Term | 12 | 0.70% | 1.42% |
| Money Market | 24 | 0.17% | 0.40% |
| Overnight | 33 | 0.09% | 0.17% |
| Short Term | 19 | 0.39% | 1.04% |
| Ultra Short Term | 19 | 0.31% | 0.91% |
| Ultra Short to Short Term | 20 | 0.37% | 0.85% |
Median expense ratio of the funds in each category, from AMFI's disclosure for 2026-09-30.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- Expense ratio (TER)
- The yearly cost of running a fund, taken out of its value a little every day. 1% means ₹1,000 a year on ₹1 lakh. Regular plans have a higher expense ratio because it includes the commission.
- Direct plan
- The version of a fund you buy straight from the fund house or a direct-plan app. No distributor is paid, so its yearly cost is lower and its returns higher.
- Regular plan
- The version of the same fund sold through a bank, agent or distributor. Their commission is taken from the fund every year, so it returns less than the direct plan.
- Distributor commission
- What the person or company that sold you a regular plan earns, as a share of your money every year for as long as you stay invested.
- Compounding
- Earning returns on your earlier returns. ₹1 lakh growing at 10% a year becomes ₹1.1 lakh after a year; the next 10% is earned on ₹1.1 lakh, not ₹1 lakh. Over many years this snowballs, which is why starting early matters so much.
- Expected return
- How much you guess your money will grow each year, on average. It is a guess, not a promise: markets rise and fall. Try a low and a high number to see the range of outcomes.
A mutual fund's expense ratio (total expense ratio, TER) pays for running the fund: the fund manager, administration, and in a regular plan the distributor's commission. It is taken out of the fund's assets every day, so you never see a bill; it simply lowers the NAV. That is why a small-looking percentage matters: it is charged on your whole balance, every year, and the money it takes stops compounding for you.
What different expense ratios cost on ₹10 lakh over 20 years
| Expense ratio | Value after 20 years | Taken by fees (vs no fee) |
|---|---|---|
| 0.1% | ₹94,75,491 | ₹1,70,802 |
| 0.5% | ₹88,20,584 | ₹8,25,709 |
| 1.0% | ₹80,62,312 | ₹15,83,982 |
| 1.5% | ₹73,66,235 | ₹22,80,058 |
| 2.0% | ₹67,27,500 | ₹29,18,793 |
| 2.25% | ₹64,28,218 | ₹32,18,075 |
Assumes the investments earn 12% a year before costs. Use the calculator for your own amount, return and period.
What makes up the expense ratio
AMFI's daily disclosure splits each plan's TER into the base expense ratio (management and running costs, including the distributor commission in a regular plan), brokerage and transaction costs, and statutory levies including GST. The regular plan of a fund always has a higher TER than the direct plan because of the commission.
Typical expense ratios by category
The table under the calculator shows the median direct and regular expense ratio in each category, from AMFI's latest disclosure. Index funds and debt funds cost least; active equity funds most.
Key takeaways
- The expense ratio is charged every year on your whole balance and is already deducted from the NAV.
- An extra 1% a year on ₹10 lakh over 20 years at 12% costs about ₹14,54,349.
- Regular plans cost more than direct plans of the same fund: the gap is the distributor's commission.
Frequently asked questions
What is the expense ratio of a mutual fund?
The yearly fee, as a percentage of your investment, that the fund deducts to pay for its management, running costs and (in regular plans) distributor commission. It is taken out daily through the NAV.
How much does expense ratio matter?
On ₹10 lakh at 12% for 20 years, 0.5% leaves ₹88,20,584 and 1.5% leaves ₹73,66,235, a difference of ₹14,54,349.
Is the expense ratio deducted from my returns?
Yes. The NAV and every published return are already after the expense ratio, so you never pay it separately.
Why is the regular plan's expense ratio higher?
It includes the commission paid to the distributor who sold you the fund. The direct plan of the same fund has no commission.
Where can I see a fund's expense ratio?
Every fund house must disclose it daily on its website and AMFI's. Pick a fund in the calculator to load its current direct and regular TER from AMFI's disclosure.