How the calculator works
A Regular plan and a Direct plan of the same scheme hold the same portfolio and have the same fund manager. What differs is the expense ratio: the yearly cost taken from the fund's assets before the NAV is published. So the calculator gives both plans the same return before expenses, then takes away each plan's own expense ratio.
- Net return for each plan = expected return before expenses − that plan's expense ratio.
- The net yearly return is converted to the equivalent monthly rate.
- Your current investment compounds from today. Each SIP instalment is added at the start of the month and compounds from then on.
- At the end of every year, the two balances are compared. The difference is what the higher expense ratio could cost, including the growth that money would have earned.
In practice, expenses accrue daily inside the NAV. Taking them off the yearly return is a close approximation, and with positive returns it slightly understates the gap.
Why a small percentage becomes a large number
An expense ratio is charged on your whole balance every year, not just on what you add. As the balance grows, the same percentage takes more rupees, and every rupee paid in costs stops compounding for you.
Take the calculator's starting figures: ₹10 lakh invested today, a ₹10,000 monthly SIP, 12% a year before expenses and expense ratios of 1.50% and 0.75%. After 15 years the Direct plan ends at about ₹94.13 lakh and the Regular plan at about ₹86.61 lakh: a gap of ₹7.53 lakh on ₹28 lakh put in. Over 30 years, the same inputs give a gap of about ₹81.35 lakh.
These are illustrations, not forecasts. Time and the size of the expense gap do most of the work, which is why the table in the calculator shows how the difference builds year by year.
Is the expense gap the same as distributor commission?
Not exactly. A Regular plan costs more mainly because distribution expenses and commission are charged to it. The Direct plan of the same scheme excludes them, so it carries a lower expense ratio. How large the gap is depends on the scheme, the fund house and the date.
This calculator shows the cost difference between the two plans, not what your distributor earns. Your half-yearly Consolidated Account Statement (CAS) from CAMS or KFintech shows the commission paid on your investment in each scheme.
Where to find the two expense ratios
- The fund house's website, which publishes the current total expense ratio (TER) of every plan.
- AMFI's expense ratio disclosures, which cover all fund houses.
- The scheme's monthly factsheet.
Check the plan name as well. "Direct Plan" in the scheme name means the Direct plan; anything else needs checking. Our guide to Direct vs Regular mutual funds explains how to tell which one you own.
What the estimate leaves out
- Tax. Moving existing units from a Regular plan to a Direct plan is a redemption and can create capital gains tax.
- Exit loads on units redeemed within the fund's exit-load period.
- Changing expense ratios. Expense ratios change over time, and the regulatory caps fall as a scheme's assets grow.
- Uneven returns. Real returns vary from year to year; the calculator uses one steady rate.
- The value of service. If a distributor gives you help you value, that is part of what the cost pays for.
Should you move to a Direct plan?
That depends on whether the help you receive is worth the cost, and on what switching would cost you now. Many investors start with new money: future SIPs go into the Direct plan, and existing units are reviewed for exit load and tax before moving. The steps are in How to Switch Regular Mutual Funds to Direct Plan. If you want advice without commission, compare the two models in RIA vs Mutual Fund Distributor.
Frequently asked questions
How does the mutual fund fee calculator work?
It gives a Regular plan and a Direct plan of the same fund the same return before expenses, subtracts each plan's expense ratio, and compounds your current investment and monthly SIP. The gap between the two final values is the estimated cost of the higher expense ratio, including the growth that money would have earned.
Is the difference between Regular and Direct expense ratios the distributor's commission?
Mostly, but not exactly. Distribution expenses and commission are charged to the Regular plan and excluded from the Direct plan, while the size of the gap is set by each fund house. The calculator measures the total cost difference between the two plans. Your half-yearly Consolidated Account Statement shows the commission actually paid on each scheme.
What return should I enter?
Enter a yearly return before expenses that you consider reasonable for the type of fund, and try a lower figure to see a cautious case. It is an assumption, not a forecast. Published fund returns are already after expenses, so add the plan's expense ratio back if you start from one. Because both plans use the same figure, the gap depends mostly on the expense ratio difference, the amount invested and the time.
Where can I find my fund's expense ratio?
Fund houses publish the current total expense ratio (TER) of every plan on their websites, AMFI publishes them across fund houses, and the scheme factsheet shows them too. Check the figures for the exact scheme and plan you hold.
Does the calculator include tax or exit load?
No. It compares holding the same fund in each plan. Moving existing units from a Regular plan to a Direct plan is a redemption, so check the exit load and capital gains tax separately before acting.
Are the numbers I enter stored?
No. The calculation runs in your browser, and the amounts you enter are not saved or sent to Genvest.
Can I check the actual plans in my portfolio?
Yes. Genvest's portfolio analysis in the app flags Regular-plan holdings and fee leakage across the mutual funds you hold, so you can see the gap for your real investments.
Related guides
- Direct vs Regular Mutual Funds: India Guide 2026
- How to Switch Regular Mutual Funds to Direct Plan
- AI Portfolio Analysis: Fund Quality, Fee Leaks and Outlook
- RIA vs Mutual Fund Distributor
- Financial Advisor Fees in India: 2026 Guide
- Mutual Fund Portfolio Review
This calculator is an educational illustration based on the figures you enter. It is not a forecast or personalised investment advice. Investments in securities market are subject to market risks. Read all related documents carefully before investing. Registration granted by SEBI, enlistment with IAASB and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.