RupeeKit Logo
Investing

Index Fund vs Active Fund Cost Calculator India

Compare how two expense ratios change future value when both funds earn the same assumed gross return before costs.

Written and reviewed by RupeeKit Editorial TeamLast reviewed 5 August 2026Report a correction
Indian investor measuring two fund-growth paths to compare long-term expense-ratio drag
Indian investor measuring two fund-growth paths to compare long-term expense-ratio drag

Educational estimate only

Results can vary based on company policy, lender terms, tax law, and personal assumptions.

See the Source and methodology section below for details.

Enter your values

Estimated results

Future value before fund costs

₹27,36,783

Index-fund net return assumption

11.80%

Active-fund net return assumption

10.50%

Index-fund future value

₹26,64,385

Active-fund future value

₹22,35,652

Index-fund cost drag

₹72,397

Active-fund cost drag

₹5,01,131

Future-value difference from costs

₹4,28,734

This calculator gives an educational estimate. Verify final numbers with your payslip, lender, tax advisor or official source.

Result visual

Relative view of your key outputs. Exact values are listed with each bar.

Inputs used in this result
Lumpsum investment
5,00,000 Rs
Investment period
15 years
Expected gross annual return
12 %
Index-fund expense ratio
0.2 %
Active-fund expense ratio
1.5 %

Share/print output contains user-entered values and educational estimates only. Verify important decisions with the relevant official source or professional.

💡 Educational Estimates Only

This visual breakdown and compounding model is for educational understanding only. Actual outcomes can vary depending on interest accrual dates, taxation brackets, processing fees, and individual employer/lender terms.

Share this calculator scenario

Copy a permalink that restores the current inputs. Shared parameter URLs are kept out of search indexing and canonicalize to the base calculator.

The link contains only the values you explicitly entered. RupeeKit does not send those values as analytics event parameters.

Fund cost-drag comparison

Quick Answer

What does this index-vs-active calculator compare? It holds the assumed gross return constant and compares how different expense ratios affect future value. It is a fee-drag comparison, not a forecast that index or active funds will outperform.

Actual fund performance, tracking difference, taxes, exit loads and portfolio choices can differ from this simplified cost comparison.

Answer Engine Summary

This calculator estimates Future value before fund costs, Index-fund net return assumption, Active-fund net return assumption, and Index-fund future value using Lumpsum investment, Investment period, Expected gross annual return, and Index-fund expense ratio. Subtracts each expense ratio from the same assumed gross return and compounds both net return assumptions for the selected period. Results are educational estimates only and should be verified with official records, lender statements, payroll data, or filing utilities where applicable.

Formula used

Subtracts each expense ratio from the same assumed gross return and compounds both net return assumptions for the selected period.

Example calculation

The comparison isolates fee drag only; it does not assume either fund generates better or worse gross performance.

This page isolates expense-ratio drag

The purpose is to answer a cost question, not a SIP-return question. Both fund routes use the same assumed gross return so the output shows the mathematical effect of recurring fund expenses over time.

Source and methodology

Last reviewed: August 2026

This calculator uses the formula and assumptions described on this page. Subtracts each expense ratio from the same assumed gross return and compounds both net return assumptions for the selected period. Values are calculated in-browser from user-entered inputs and are not saved by default. Verify tax, regulatory, lender, scheme or product rules with the relevant official source where applicable.

Educational estimate only. RupeeKit does not provide personalized financial, investment, legal, tax or loan advice.

Related calculators and guides

You can cross-check this estimate using: salary in-hand calculator, Old vs New Tax Regime Calculator, 80C deduction calculator, EMI calculator, ITR-2 filing guide, emergency fund guide.

When this tool is useful

  • When you want a fast estimate before making a financial or salary decision.
  • When you want to compare different assumptions in seconds.
  • When you want to understand the formula behind the result.

Calculator Facts

TopicRupeeKit explanation
Calculation typeFormula-based educational estimate from user-entered values
Key inputsLumpsum investment, Investment period, and Expected gross annual return
Primary outputsFuture value before fund costs, Index-fund net return assumption, and Active-fund net return assumption
Method referenceSubtracts each expense ratio from the same assumed gross return and compounds both net return assumptions for the selected period.
PrivacyValues are processed in the browser and are not saved by default.

FAQs

Does a lower expense ratio guarantee a higher return?

No. This calculator deliberately holds gross return constant to isolate cost drag. Actual fund performance, tracking difference and portfolio choices vary.

Does this include exit load or tax?

No. It compares recurring expense ratios only and excludes one-time charges, transaction costs and tax.

Does a lower expense ratio guarantee better investment returns?

No. The calculator deliberately keeps gross return equal to isolate fees. Real funds can have different holdings, tracking differences and performance.

Should I use this page to calculate my SIP corpus?

Use the regular or Step-Up SIP calculator for contribution-based corpus projections. Use this page when the question is specifically the long-term cost difference between expense ratios.