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Expense Ratio Formula

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Expense Ratio is an important metric for investors to consider because it can impact the overall returns of the investment over time. Check FAQs

ER = \frac{AOE}{AFA}

ER - Expense Ratio?AOE - Annual Operating Expenses?AFA - Average Fund Assets?

Expense Ratio Example

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Here is how the Expense Ratio equation looks like with Values.

Here is how the Expense Ratio equation looks like with Units.

Here is how the Expense Ratio equation looks like.

1.8832 = \frac{258000}{137000}

1.8832 = \frac{258000}{137000}

1.8832 = \frac{258000}{137000}

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Expense Ratio Solution

Follow our step by step solution on how to calculate Expense Ratio?

FIRST Step Consider the formula

ER = \frac{AOE}{AFA}

Next Step Substitute values of Variables

∴

ER = \frac{258000}{137000}

Next Step Prepare to Evaluate

∴

ER = \frac{258000}{137000}

Next Step Evaluate

∴

ER = 1.88321167883212

LAST Step Rounding Answer

∴

ER = 1.8832

Expense Ratio Formula Elements

Variables

Expense Ratio

Expense Ratio is an important metric for investors to consider because it can impact the overall returns of the investment over time.

Symbol: ER

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Expense Ratio

Annual Operating Expenses

Annual Operating Expenses is the sum of all the costs and fees incurred by the fund during the year.

Symbol: AOE

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Annual Operating Expenses

Average Fund Assets

Average Fund Assets is the average value of the fund's assets under management over the same period.

Symbol: AFA

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Average Fund Assets

Other formulas in Asset Management category

Go Amortization of Intangible Assets

AE = \frac{HCIA - RV}{ULA}

Go Net Capital Spending

NCS = ENFA - BNFA + Dep n

Go Residual Income

RI = OI - MRRR \cdot AOA

Go Internal Growth Rate

IGR = RR \cdot ROA

How to Evaluate Expense Ratio?

Expense Ratio evaluator uses Expense Ratio = Annual Operating Expenses/Average Fund Assets to evaluate the Expense Ratio, The Expense Ratio represents the total operating costs incurred by a mutual fund as a percentage of its average value of net assets managed. Expense Ratio is denoted by ER symbol.

How to evaluate Expense Ratio using this online evaluator? To use this online evaluator for Expense Ratio, enter Annual Operating Expenses (AOE) & Average Fund Assets (AFA) and hit the calculate button.

FAQs on Expense Ratio

What is the formula to find Expense Ratio?

The formula of Expense Ratio is expressed as Expense Ratio = Annual Operating Expenses/Average Fund Assets. Here is an example- 1.883212 = 258000/137000.

How to calculate Expense Ratio?

With Annual Operating Expenses (AOE) & Average Fund Assets (AFA) we can find Expense Ratio using the formula - Expense Ratio = Annual Operating Expenses/Average Fund Assets.

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Expense Ratio Formula

Expense Ratio Example

Expense Ratio Solution

Expense Ratio Formula Elements

Other formulas in Asset Management category

How to Evaluate Expense Ratio?

FAQs on Expense Ratio

Variable Name