Mutual Fund Calculator
Future value with contributions — and what the expense ratio costs you
Future Value
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Frequently Asked Questions
How is mutual fund growth calculated?
It compounds your initial investment plus monthly contributions at your net return (expected return minus the expense ratio), monthly, over your time horizon. The future value combines the growth of the lump sum and the growth of the recurring contributions.
What is an expense ratio and why does it matter?
The expense ratio is the annual percentage a fund charges to cover management and operating costs. It is deducted from returns every year, so even a 1% ratio can cost tens of thousands over decades. This calculator shows exactly how much fees eat into your final balance.
What is a good expense ratio?
Low-cost index funds often charge 0.03–0.20%. Actively managed funds commonly charge 0.5–1.5%. Because fees compound against you, favoring low-expense funds is one of the most reliable ways to improve long-term returns.
What return should I assume?
A diversified stock fund has historically returned roughly 7–10% before inflation over long periods, but returns vary widely year to year and are not guaranteed. Bond and balanced funds return less. Try a range to see best and worst cases.
Does this account for taxes?
No — it models pre-tax growth. In a taxable account, dividends and capital gains may be taxed along the way and at sale. Tax-advantaged accounts (401k, IRA) defer or eliminate those taxes. Treat this as a gross estimate.