Expense Ratio Calculator





Formula

The formula to calculate the expense ratio is:

\[ E = \frac{TC}{TA} \]

Where:

What is an Expense Ratio?

The expense ratio of a fund is defined as the ratio of total fund costs to the total value of the fund’s assets. It measures the amount of the fund's assets that are used for administrative and other operating expenses. A lower expense ratio indicates a more efficiently managed fund.

Example Calculation

Let's assume the following values:

Step 1: Divide the total fund costs by the total fund assets:

\[ E = \frac{50000}{10000000} = 0.005 \]

The Expense Ratio (E) is 0.005 or 0.5%.