NAV Calculator - Net Asset Value
Enter a fund's total assets, total liabilities, shares outstanding, and an optional expense ratio to calculate net asset value (NAV) and NAV per share. The calculator also breaks down total NAV, the after-expense NAV per share, and gives you a worked step-by-step panel showing exactly how the math flows. Results update as you type.
Formula
Worked example
A corporate bond fund holds $500,000,000 in assets and owes $8,000,000 in liabilities. Total NAV = $500M - $8M = $492,000,000. With 25,000,000 shares outstanding: NAV per share = $492,000,000 / 25,000,000 = $19.6800. With a 0.65% expense ratio, daily drag per share = $19.68 x (0.0065 / 365) = $0.000350. After one full year, NAV per share before any market movement = $19.68 x (1 - 0.0065) = $19.5521.
What is net asset value (NAV)?
Net asset value is the per-share dollar value of a fund calculated by subtracting all liabilities from all assets and then dividing by the number of shares outstanding. For mutual funds, this number is the official purchase and redemption price struck at market close every business day. For ETFs, it is the intraday indicative value - the market price can trade at a slight premium or discount to NAV depending on supply and demand. REITs and hedge funds also use NAV, though their calculation cadences and asset-valuation methods differ from daily open-end mutual funds. NAV rises when the fund's portfolio gains in value and falls when it loses value or when liabilities increase. Unlike a stock price, which is shaped by supply and demand, mutual fund NAV is a pure arithmetic result: the math is transparent and leaves no room for market sentiment to distort it.
How to use this NAV calculator
Enter the fund's total assets (market value of all securities plus cash and receivables), total liabilities (accrued fees, accounts payable, short-term obligations), and the number of shares or units outstanding. An optional annual expense ratio unlocks two extra outputs: the NAV per share after one year of fee erosion and the daily expense drag in dollars per share. The fund type selector does not change the math - it tailors the interpretation in the insight panel. The built-in step-by-step panel traces every arithmetic operation with your actual numbers. A worked example at the bottom shows the same calculation using real-world fund figures for a corporate bond fund. Use the currency selector if you want results displayed in a currency other than USD - the formula is currency-agnostic, so pick whatever unit your fund reports in.
NAV vs. market price: the ETF premium-discount
For mutual funds, NAV is the only price that matters: you buy and sell at that day's closing NAV with no spread. ETFs trade on an exchange throughout the day, so their market price fluctuates around the NAV. When the ETF price is above NAV, the fund trades at a premium; when below, at a discount. Authorized participants (large institutions) can create or redeem ETF shares to arbitrage away large discrepancies, which keeps premiums and discounts small for liquid funds - typically a few basis points for major index ETFs, but potentially wider for niche or illiquid funds. Checking a fund's premium/discount history alongside its NAV helps investors avoid overpaying.
Why expense ratio matters for long-run NAV growth
The expense ratio is deducted from fund assets continuously throughout the year, reducing NAV by roughly 1/365th of the annual rate each day. This compounding drag is easy to underestimate. A fund earning 7% gross per year with a 1% expense ratio delivers only 6% to investors; over 30 years a $10,000 investment grows to roughly $57,400 gross but only $43,200 net - a $14,000 difference from fees alone. The daily drag chart in this calculator makes that erosion visible. Index ETFs at 0.03%-0.10% leave almost nothing on the table; actively managed funds above 1% need to beat their benchmark by at least that much annually just to break even with a low-cost alternative.
Typical expense ratios by fund type
| Fund type | Typical range | Investor implication |
|---|---|---|
| S&P 500 index ETF | 0.03% - 0.10% | Minimal drag |
| Broad index mutual fund | 0.05% - 0.20% | Very low drag |
| Active equity mutual fund | 0.50% - 1.20% | Moderate drag |
| Active bond mutual fund | 0.40% - 0.90% | Moderate drag |
| Sector / thematic ETF | 0.20% - 0.65% | Low to moderate drag |
| Small-cap active fund | 0.80% - 1.50% | High drag |
| Hedge fund | 1.50% - 2.00% + 20% carry | Very high drag |
Annual expense ratios reported by Morningstar and the Investment Company Institute for U.S. funds. Lower is better for long-term investors.
Frequently asked questions
What is the NAV formula?
NAV = (Total Assets - Total Liabilities) / Shares Outstanding. Total assets include the market value of all securities in the portfolio, cash, and any accrued income. Total liabilities include management fees payable, accrued operating costs, and any borrowings. The result is the per-share value of the fund.
Is a higher NAV better than a lower one?
Not necessarily. NAV reflects the current price of one unit of a fund, not its performance or quality. Two identical portfolios can have very different NAVs depending on how many shares were issued. What matters is the percentage change in NAV over time (total return), not the absolute number. A fund with a $5 NAV that doubles is just as good as one with a $50 NAV that doubles.
How often is NAV calculated?
Open-end mutual funds calculate NAV once per business day after the U.S. markets close, typically around 4 p.m. Eastern Time. ETFs have an intraday indicative NAV updated every 15 seconds during trading hours, but the official closing NAV is struck once daily. REITs may report NAV quarterly, and hedge funds often calculate monthly.
Can NAV be negative?
Technically yes if liabilities exceed assets, but regulatory requirements in most jurisdictions force funds to maintain enough liquid assets to cover liabilities, making a negative NAV extremely rare for registered funds. If you enter numbers that produce a negative result in this calculator, the outputs will show that the fund is technically insolvent.
What is the difference between NAV and book value?
They are similar concepts but applied differently. Book value on a corporate balance sheet uses historical cost for assets (adjusted for depreciation and amortization). Fund NAV uses the current fair market value of assets, re-priced every day. For REITs specifically, the book NAV on the balance sheet can differ substantially from the analyst's mark-to-market NAV because real estate is carried at cost on the books but revalued using cap rates for NAV purposes.
How does the expense ratio affect NAV per share over time?
The expense ratio is deducted from fund assets daily at a rate of the annual percentage divided by 365. This reduces NAV by a small amount each day, compounding over time. A 1% annual expense ratio erodes roughly 9.5% of a fund's value over 10 years compared to a zero-cost fund, assuming no market movement. Use the chart in this calculator to visualize the cumulative drag for your fund's specific expense ratio.
What counts as fund assets for the NAV calculation?
Fund assets include the market value of all securities in the portfolio (stocks, bonds, derivatives), cash and cash equivalents, receivables for securities sold but not yet settled, accrued dividends and interest due to the fund, and any other property the fund owns. Short-term receivables and accrued income are included because the fund has a legal right to them even if cash has not yet arrived.