Expense Ratio Calculator

✖Annual Operating Expenses is the sum of all the costs and fees incurred by the fund during the year.ⓘ Annual Operating Expenses [AOE]			+10% -10%
✖Average Fund Assets is the average value of the fund's assets under management over the same period.ⓘ Average Fund Assets [AFA]			+10% -10%

✖Expense Ratio is an important metric for investors to consider because it can impact the overall returns of the investment over time.ⓘ Expense Ratio [ER]

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Formula

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Expense Ratio

Formula

`"ER" = "AOE"/"AFA"`

Example

`"1.883212"="258000"/"137000"`

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Expense Ratio Solution

STEP 0: Pre-Calculation Summary

Formula Used

Expense Ratio = Annual Operating Expenses/Average Fund Assets
ER = AOE/AFA
This formula uses 3 Variables

Variables Used

Expense Ratio - Expense Ratio is an important metric for investors to consider because it can impact the overall returns of the investment over time.
Annual Operating Expenses - Annual Operating Expenses is the sum of all the costs and fees incurred by the fund during the year.
Average Fund Assets - Average Fund Assets is the average value of the fund's assets under management over the same period.

STEP 1: Convert Input(s) to Base Unit

Annual Operating Expenses: 258000 --> No Conversion Required
Average Fund Assets: 137000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

ER = AOE/AFA --> 258000/137000

Evaluating ... ...

ER = 1.88321167883212

STEP 3: Convert Result to Output's Unit

1.88321167883212 --> No Conversion Required

FINAL ANSWER

1.88321167883212 ≈ 1.883212 <-- Expense Ratio

(Calculation completed in 00.004 seconds)

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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has verified this Calculator and 25+ more calculators!

< 17 Asset Management Calculators

Seller's Discretionary Earnings

Go Seller Discretionary Earnings = Pre-Tax Income+Owner's Salary+Net Interest Expenses+Depreciation and Amortization+Discretionary Expenses+Non Recurring Expenses

Amortization of Intangible Assets

Go Amortization Expense = (Historical Cost of Intangible Asset-Residual Value)/Useful Life Assumption

Cash Available for Distribution

Go Cash Available for Distribution = Funds from Operations+Non-Recurring Items-Capital Expenditures

Residual Income

Go Residual Income = Operating Income-Minimum Required Rate of Return*Average Operating Assets

Net Capital Spending

Go Net Capital Spending = Ending Net Fixed Assets-Beginning Net Fixed Assets+Depreciation

Capital Structure

Go Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight

Allowance Method of Doubtful Accounts

Go Net Accounts Receivables = Gross Accounts Receivables-Allowance for Doubtful Accounts

Operating Working Capital

Go Operating Working Capital = Operating Current Assets-Operating Current Liabilities

Inventory Write-Down

Go Inventory Write Down = Historical Cost-Lower of Cost or Net Realizable Value

Net Realizable Value

Go Lower of Cost or Net Realizable Value = Expected Sale Price-Disposal Costs

Net Identifiable Assets

Go Net Identifiable Assets = Identifiable Assets-Total Liabilities

Expense Ratio

Go Expense Ratio = Annual Operating Expenses/Average Fund Assets

Inventory Days

Go Inventory Days = (Average Inventory/Cost Of Goods Sold)*365

Basic Earnings Power Ratio

Go Basic Earnings Power Ratio = Operating Income/Total Assets

Internal Growth Rate

Go Internal Growth Rate = Retention Ratio*Return on Assets

Depreciable Cost of Asset

Go Depreciable Cost = Purchase Cost-Salvage Value

Conversion Price

Go Conversion Price = Par Value/Conversion Ratio

Expense Ratio Formula

Expense Ratio = Annual Operating Expenses/Average Fund Assets
ER = AOE/AFA

What is Expense Ratio?

The expense ratio is a measure used primarily in the mutual fund and exchange-traded fund (ETF) industries to assess the total annual costs incurred by an investment fund as a percentage of its total assets under management (AUM). It's an important metric for investors to consider because it can impact the overall returns of the investment over time.
Investors often compare the expense ratios of different funds within the same category to determine which funds offer better value. Generally, funds with lower expense ratios are preferred because they allow investors to keep more of their investment returns. However, it's important to consider other factors like performance, investment strategy, and risk profile when selecting an investment fund.

How to Calculate Expense Ratio?

Expense Ratio calculator uses Expense Ratio = Annual Operating Expenses/Average Fund Assets to calculate the Expense Ratio, The Expense Ratio represents the total operating costs incurred by a mutual fund as a percentage of its average value of net assets managed. Expense Ratio is denoted by ER symbol.

How to calculate Expense Ratio using this online calculator? To use this online calculator for Expense Ratio, enter Annual Operating Expenses (AOE) & Average Fund Assets (AFA) and hit the calculate button. Here is how the Expense Ratio calculation can be explained with given input values -> 1.883212 = 258000/137000.

FAQ

What is Expense Ratio?

The Expense Ratio represents the total operating costs incurred by a mutual fund as a percentage of its average value of net assets managed and is represented as ER = AOE/AFA or Expense Ratio = Annual Operating Expenses/Average Fund Assets. Annual Operating Expenses is the sum of all the costs and fees incurred by the fund during the year & Average Fund Assets is the average value of the fund's assets under management over the same period.

How to calculate Expense Ratio?

The Expense Ratio represents the total operating costs incurred by a mutual fund as a percentage of its average value of net assets managed is calculated using Expense Ratio = Annual Operating Expenses/Average Fund Assets. To calculate Expense Ratio, you need Annual Operating Expenses (AOE) & Average Fund Assets (AFA). With our tool, you need to enter the respective value for Annual Operating Expenses & Average Fund Assets and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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