Value-weighted ratio
Portfolio expense ratio = Σ(weighti × expense ratioi)
If 60% of a portfolio has a 0.03% expense ratio, 25% has 0.08%, and 15% has 0.05%, the weighted ratio is:
(0.60 × 0.03%) + (0.25 × 0.08%) + (0.15 × 0.05%) = 0.0455%
Portfolio Expense Ratio Calculator
Portfolio fee results
Weighted expense ratio—
Value-weighted annual operating expenses.
Estimated current annual cost—
Current value × weighted expense ratio.
Projected ending value after fund expenses—
Based on the selected assumptions.
Estimated direct fund expenses—
Approximate recurring expenses over the projection.
Total fee drag vs 0% reference—
Direct expenses plus growth no longer earned.
Ending balance difference vs comparison—
Positive means the comparison ends higher.
Projected balance over time
The exact year-by-year values will appear in the table after calculation.
Show year-by-year projection
| Year | Your portfolio | Comparison | 0% expense reference | Cumulative direct expenses | Fee drag vs 0% |
|---|---|---|---|---|---|
| Calculate to create the projection. | |||||
Results are estimates, not investment advice. Actual expenses accrue through fund net asset value and balances and returns vary over time.
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How the portfolio expense ratio is calculated
Current annual cost estimate
Current annual cost ≈ portfolio value × portfolio expense ratio
At a fixed value of $100,000, a 0.0455% weighted ratio is about $45.50 per year. Actual dollars deducted change as fund assets change.
Long-term projection method
The calculator converts the annual pre-fee return and annual expense ratio into monthly effective rates. Each month it applies the gross return, deducts the expense ratio from the resulting balance, then adds the selected month-end contribution. The same cash flows and pre-fee return are used for your portfolio, the comparison ratio, and the 0% reference.
Monthly gross rate = (1 + annual gross return)1/12 − 1
Monthly expense rate = 1 − (1 − annual expense ratio)1/12
Next balance = current balance × (1 + monthly gross rate) × (1 − monthly expense rate) + contribution
Fee drag is the 0% reference ending value minus the after-expense ending value. It exceeds direct expenses when the deducted money would otherwise have earned returns.
What this estimate includes—and leaves out
Included
- Annual operating expense ratios for the entered holdings
- Current holdings weighted by allocation or market value
- Recurring contributions at the end of each month
- Compounding and the growth foregone when expenses are deducted
Not included
- Sales loads, commissions, spreads, taxes, or trading costs
- Adviser, platform, plan, or account-level fees
- Expense waivers that begin or expire during the period
- Changes in holdings, allocation, returns, or expense ratios
Use current market-value weights for today’s portfolio cost. Use target weights only when estimating the cost of a planned allocation. A lower-cost fund is not automatically a better investment: objective, risk, tracking, liquidity, taxes, and other costs also matter.
Portfolio expense ratio FAQ
How do I calculate the expense ratio of a portfolio?
Multiply each holding’s expense ratio by its share of total portfolio value, then add those weighted results. A 60% holding with a 0.10% expense ratio contributes 0.06 percentage points to the portfolio ratio.
What does a 0.25% expense ratio cost?
At a constant balance of $100,000, a 0.25% expense ratio is approximately $250 per year. The actual dollar amount changes as the fund’s net assets change, and long-term cost also includes growth the deducted money can no longer earn.
Is an expense ratio charged once or every year?
An expense ratio represents recurring annual fund operating expenses. It is generally deducted from fund assets rather than billed as a separate annual invoice, reducing net asset value and investment return.
Does the expense ratio include every investment fee?
No. It does not necessarily include sales loads, brokerage commissions, bid-ask spreads, advisory or account fees, taxes, or certain transaction costs. Check the fund prospectus and account disclosures.
Should I use target weights or current values?
Use current market-value weights to estimate what the portfolio costs now. Target weights are useful for estimating the expense ratio after a planned allocation or rebalance.
Why is long-term fee drag greater than the fees deducted?
Money removed for expenses is no longer invested. The balance difference versus a zero-fee projection therefore includes both estimated direct expenses and the growth those deducted amounts could have earned.
Sources, assumptions, privacy, and disclaimer
Source basis: The U.S. Securities and Exchange Commission’s Investor Bulletin on investment fees explains that fund annual operating expenses are commonly charged as a percentage of assets and reduce returns. Its Mutual Fund and ETF Fees and Expenses bulletin explains what a prospectus fee table covers and which costs may fall outside an expense ratio. FINRA’s mutual fund guidance recommends comparing total annual fund operating expenses and checking the fund prospectus.
Projection assumptions: The allocation, expense ratios, contribution, and pre-fee return remain constant. Returns and expenses are distributed at monthly effective rates, contributions occur at month end, and fractional units are assumed. The comparison changes only the expense ratio; it does not assert that a comparable investment with that cost exists. No inflation adjustment is made.
Privacy: Calculations run locally in your browser. This tool does not send, store, or track the values entered. Downloading or copying results occurs only when you select that control.
Editorial owner: Starlight Robotics Research Team. Reviewed and updated: 31 July 2026.
Important: This calculator provides hypothetical estimates for education and comparison only. It is not financial, investment, tax, or legal advice and does not recommend any fund. Review current prospectuses and account disclosures, and consult a qualified professional for decisions that depend on your circumstances.