Direct vs Regular Mutual Fund Calculator
See exactly how much a Regular plan's commission costs you over a lifetime. Compare the final corpus of a Direct and a Regular plan side by side — for a monthly SIP or a one-time lumpsum — and find the extra wealth you keep by going Direct.
Total invested
₹18,00,000
Direct corpus
₹47,20,447
net 11.30% p.a.
Regular corpus
₹43,78,276
net 10.50% p.a.
Extra wealth with Direct (lifetime commission drag of Regular)
₹3,42,171
That's 19.0% of everything you invested — lost to distributor commission.
| Total invested | ₹18,00,000 |
| Direct plan corpus | ₹47,20,447 |
| Regular plan corpus | ₹43,78,276 |
| Extra wealth with Direct | ₹3,42,171 |
Both plans are assumed to hold the same portfolio and earn the same gross return; only the expense ratio differs. Real-world expense ratios change over time, so treat this as an estimate. TopOpenTools is not a SEBI-registered investment adviser; this tool is for information only.
Frequently Asked Questions
What is the difference between Direct and Regular mutual funds?
They are the same scheme with the same portfolio and fund manager. A Regular plan pays a distributor/agent commission, which is built into a higher expense ratio. A Direct plan has no commission, so its expense ratio is lower and your net return is higher.
How does this calculator work?
For each plan it sets net annual return = expected return − expense ratio, then compounds your money. SIP uses M = P × [((1+i)^n − 1)/i] × (1+i) with i = net return/12; lumpsum uses amount × (1 + net return)^years. The gap between the two corpus values is the commission drag.
Why is the difference so large over time?
A seemingly tiny gap — say 0.8% a year — compounds. Because it shaves your return every single year on a growing balance, over 15–25 years it can cost lakhs. That compounding is exactly what the “extra wealth with Direct” figure captures.
What expense ratios should I enter?
Defaults of 1.5% (Regular) and 0.7% (Direct) are typical for actively managed equity funds, but ratios vary by scheme. Check the exact total expense ratio (TER) for your Direct and Regular plan on the AMC factsheet or the AMFI website and enter those.
Is this investment advice?
No. This is a deterministic estimate for information only. TopOpenTools is not a SEBI-registered investment adviser and does not recommend any scheme or plan.
Understanding the Direct vs Regular Mutual Fund Calculator
Direct and Regular mutual fund plans are the same scheme with the same portfolio and fund manager — the only difference is that a Regular plan pays a distributor commission, which is bundled into a higher expense ratio. That extra cost quietly lowers your net return every single year. This calculator quantifies the damage: it compounds your SIP or lumpsum under both plans and shows the lifetime 'commission drag' — the extra corpus a Direct plan builds versus a Regular plan.
How it works
For each plan the tool computes net annual return = expected return − expense ratio, then projects the final corpus. A SIP is compounded with the future-value-of-annuity formula and a lumpsum with simple compound growth. The Direct plan, having a lower expense ratio (default 0.7%), earns a higher net return than the Regular plan (default 1.5%), so its corpus ends up larger. The difference between the two corpus values is the commission drag — the wealth you forfeit by holding a Regular plan. The result updates live as you change the investment type, amount, expected return, tenure, or either expense ratio.
Worked example
A ₹10,000 monthly SIP for 15 years at a 12% expected return: the Direct plan (0.7% ER → 11.3% net) grows to roughly ₹47.5 lakh, while the Regular plan (1.5% ER → 10.5% net) reaches about ₹44.1 lakh on ₹18 lakh invested. The roughly ₹3.4 lakh gap is pure distributor commission you keep by choosing Direct — close to 19% of everything you put in.
Tips & common mistakes
- Always check the exact total expense ratio (TER) for both the Direct and Regular variant of your scheme on the AMC factsheet or AMFI before relying on the defaults.
- The longer the horizon, the bigger the drag — even a 0.8% annual gap compounds into lakhs over 20+ years.
- Switching an existing Regular folio to Direct can trigger exit load and capital-gains tax, so weigh those one-time costs against future savings.
- Direct plans need you to do your own research or use a flat-fee adviser; the commission you save is the price of that DIY effort.
- Index funds and ETFs already have very low expense ratios, so the Direct-vs-Regular gap is largest for actively managed equity funds.
Sources & methodology
- • AMFI India — Direct vs Regular plans and expense ratio disclosures (amfiindia.com)
- • SEBI Mutual Fund Regulations — total expense ratio (TER) limits
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Built and maintained by TopOpenTools · Last updated June 2026. These tools provide general estimates for educational purposes only and are not financial, tax, insurance, investment, or medical advice. Verify important decisions with a qualified professional.