Mutual Fund Calculator
Project mutual fund returns net of expense ratios, sales loads and the tax drag from taxable distributions. Shows the real take-home growth after costs.
How to use the Mutual Fund Calculator
- Enter your inputs into the Mutual Fund Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The net return formula
Net annual return = Gross return − expense ratio − tax drag
Subtract the fund's expense ratio (annual operating fee) from the gross return. For taxable accounts, also subtract estimated tax drag on distributions. Then compound at the net rate over the holding period.
Worked example
$100,000 invested for 30 years at 8% gross return with a 0.5% expense ratio: net return 7.5%, FV ≈ $874,500. The same fund with a 1.5% expense ratio: net 6.5%, FV ≈ $660,000. Fees alone cost about $214,000 over the 30 years.
Frequently asked questions
What is an expense ratio?
The annual fee, expressed as a percentage of assets, that the fund charges to operate. Index funds run 0.03–0.20%; actively-managed funds typically 0.5–1.5%.
What's the difference between front-load and no-load funds?
A front-load fund deducts a sales commission (often 3–5.75%) from each investment upfront. No-load funds skip the commission. Most retail investors should default to no-load index funds.
How big is the tax drag in a taxable account?
Typical tax drag on a diversified equity fund in a taxable account is 0.5–1.5% per year — significant over decades. Tax-efficient ETFs and index funds drag less than active funds with high turnover.