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Expense Ratio Calculator — Direct vs Regular Fund
Compare direct vs regular fund plans and see the expense ratio impact.
Expense Ratio Impact Calculator
Compare how direct vs regular plan expense ratios affect your returns
Direct Plan Value
$9,724,759
Regular Plan Value
$8,175,968
You Save (Direct)
$1,548,791
Direct Plan$9,724,759
100%
Regular Plan$8,175,968
84%
Your Savings$1,548,791
Growth Over Time
Direct Plan
Regular Plan
Even a small difference in expense ratios compounds into a significant gap over time. Compare direct vs regular mutual fund plans to see how much you save by choosing direct. This calculator models the long-term impact of total expense ratio (TER) on your investment returns, helping you make informed fund choices.
Frequently Asked Questions
What is an expense ratio in mutual funds?
Expense ratio (also called Total Expense Ratio or TER) is the annual fee charged by a mutual fund to manage your money, expressed as a percentage of assets under management. It covers fund management, marketing, and administrative costs and is deducted from your returns daily.
What is the difference between direct and regular mutual fund plans?
Direct plans are purchased directly from the fund house without a distributor, so they have a lower expense ratio (typically 0.5–1% less). Regular plans include a distributor commission, which increases the TER. Over long periods, this difference compounds into a significant gap in returns.
How much does expense ratio actually affect my returns?
Even a 0.5% difference in expense ratio can reduce your final corpus by 8–12% over 20 years. For example, on a monthly SIP at 12% return over 20 years, a 1.5% TER vs 0.5% TER can cost you several months' worth of contributions in lost gains.