Cost drag calculator: direct vs regular plan
See what an extra annual cost, such as a regular plan's higher expense ratio, takes out of a lump sum over any number of years, in rupees and as a share of the final value.
Prefilled with: the direct and regular plans of Parag Parikh Flexi Cap Fund, 28 May 2013 to 31 March 2026, from AMFI via mfapi.in (the expense ratio post's example).
What it does
A fund’s expense ratio comes out of its NAV (net asset value) every day, so you never see it charged. This calculator shows what a difference in that cost adds up to. Enter a lump sum, the number of years, the lower-cost plan’s return after its costs, and how much more the higher-cost plan charges each year. It shows what each grows to, the gap in rupees, and the share of the final value the extra cost took.
It starts from the expense ratio post’s example: the direct and regular plans of one actively managed fund. The rates are the exact ones from their daily NAVs, which is why they carry several decimals: rounded, the answer moves by a few rupees and no longer matches the post. Reset to the post’s example puts them back.
The formula
Lower-cost plan = Amount × (1 + r)^N
Higher-cost plan = Amount × (1 + r − extra cost)^N
r is the lower-cost plan’s return a year after its own costs; N is the number of years. The extra cost compounds: you lose the fee, and also the growth the fee would have produced.
What it leaves out
It handles a single lump sum, before tax. It treats the extra cost as a flat annual percentage, which fits a direct vs regular plan of the same fund; a product whose charges are built differently, such as a ULIP (unit-linked insurance plan), needs its own arithmetic. And a lower cost is only half the comparison: the regular plan’s extra cost pays for distribution and advice, which the post discusses.
How it works
The method, step by step, with the worked example this tool reproduces: Expense ratio in mutual funds: direct vs regular plan.