Investments calculator
How much could a lower expense ratio add to your long-term corpus?
Compare how Direct and Regular plan expense ratios may change a lumpsum, SIP or combined mutual-fund corpus over time.
Estimated Direct-plan advantage
—Year-by-year comparison
The table keeps the portfolio and contributions identical, then applies the entered Direct and Regular expense ratios to show the compounding impact each year.
Swipe horizontally to see every column.
| Year | Amount invested | Before expenses | Direct plan corpus | Regular plan corpus | Direct advantage | Advantage in today’s money |
|---|
How it works
Both paths use the same expected return before expenses. Each plan’s entered expense ratio is subtracted from that annual return, and the resulting net annual rate is compounded monthly. SIP contributions are invested at the start of each month and step up after every 12 contributions. Any switching cost is deducted from the Direct-plan starting corpus at time zero. Expense ratios, returns and inflation are held constant. Taxes, exit loads and advice or platform fees are excluded unless you include them in the switching-cost input. Published mutual-fund returns and NAV performance are normally already after actual scheme expenses, so do not subtract the expense ratio again from a net historical return.
This result is an educational estimate. Rates, taxes, fees, product rules, and market returns can change.
India-focused guide
Enter a lumpsum, monthly SIP or both, then compare the Direct and Regular plan expense ratios for the same assumed portfolio return. The calculator shows both projected corpuses, the long-term wealth gap, its value in today’s money and a year-by-year TER impact table.
Investment pattern, Starting investment, Monthly SIP, Annual SIP step-up, Expected return before expenses, Direct plan expense ratio, Regular plan expense ratio, Investment period, Expected inflation, One-time switching cost deducted now.
Both paths use the same expected return before expenses. Each plan’s entered expense ratio is subtracted from that annual return, and the resulting net annual rate is compounded monthly. SIP contributions are invested at the start of each month and step up after every 12 contributions. Any switching cost is deducted from the Direct-plan starting corpus at time zero. Expense ratios, returns and inflation are held constant. Taxes, exit loads and advice or platform fees are excluded unless you include them in the switching-cost input. Published mutual-fund returns and NAV performance are normally already after actual scheme expenses, so do not subtract the expense ratio again from a net historical return.
Detailed guide
This calculator isolates the long-term effect of the expense-ratio difference between Direct and Regular plans of the same mutual-fund scheme. Both paths use the same investment pattern and pre-expense return so the displayed gap comes only from TER, compounding and any switching cost entered.
The expected return before expenses is reduced by the entered Total Expense Ratio for each plan. The two resulting net annual rates are converted into equivalent monthly rates, then applied to the same starting investment and monthly contributions.
This is a planning approximation. In an actual scheme, expenses accrue against daily net assets and the reported NAV already reflects those expenses. TER and portfolio returns can both change over time.
FormulaEstimated net annual return = expected return before expenses − plan expense ratio
The default example starts with ₹5 lakh, adds ₹10,000 a month and increases the SIP by 10% each year. It assumes a 12% pre-expense return, a 0.50% Direct TER and a 1.50% Regular TER. The amount invested over 20 years is about ₹73.73 lakh.
Under the smooth-return model, the Direct corpus reaches about ₹2.22 crore and the Regular corpus about ₹1.99 crore. The ₹23.09 lakh difference is the estimated ending-wealth gap, not the amount of distributor commission paid.
| Planning item | Direct plan | Regular plan |
|---|---|---|
| Entered expense ratio | 0.50% a year | 1.50% a year |
| Estimated net return | 11.50% a year | 10.50% a year |
| Projected corpus after 20 years | ₹2.22 crore | ₹1.99 crore |
| Difference at year 20 | ₹23.09 lakh ahead | — |
| Difference in today’s money at 6% inflation | ₹7.20 lakh | — |
A higher TER reduces NAV growth a little at a time. Every rupee removed also loses the growth it could have earned later, so the final corpus gap combines expenses with years of forgone compounding. It should therefore be described as a projected wealth difference, not as a bill or commission statement.
AMFI explains that Direct and Regular plans of the same scheme have a common portfolio and fund manager but different expense ratios and NAVs. The choice can also include the value of advice and service, which this numerical comparison does not price.
Common questions
Yes. Scheme NAV and published plan performance normally already reflect expenses charged to that plan. Do not take a net historical return and subtract TER again.
No. The ending gap includes the compounding that was not earned after expenses reduced the corpus. It is a projected wealth difference, not an account of commission paid.
For Direct and Regular plans of the same mutual-fund scheme, official AMFI material describes a common portfolio and fund manager, with different expense ratios and NAVs.
This calculator does not make that recommendation. A switch can involve exit load, capital-gains tax, operational work and the loss of distributor support. Check the scheme documents and your circumstances first.
Yes. The calculator holds both TER inputs constant for comparison, but actual plan expenses can change. Verify the current TER before using the result.
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