401(k) Fee Drag Calculator
See how two fee levels change a projected balance under the same gross return assumption.
Not financial, tax, or lending advice. Confirm terms with your provider.
Balance @ low fee
$1,060,424
Balance @ high fee
$888,216
Fee drag difference
$172,207
Constant return net of stated fee; contributions at year-end. Markets vary. Not investment advice.
How retirement fees compound
Expense ratios and plan admin fees subtract continuously from assets. A gap that looks tiny in one year becomes material across decades because the drag compounds against growth.
Unlike a bank monthly maintenance fee you can see on a statement line, fund expenses are usually embedded. That invisibility is exactly why a side-by-side fee drag view helps.
How to use this calculator
Pull expense ratios and admin fees from your plan fee disclosure and fund prospectuses — not from marketing averages. Enter the same contribution and gross return assumptions for both fee levels so the comparison isolates cost.
Remember: employer match often dwarfs fee differences. Do not abandon a match solely to chase a slightly cheaper external account without running the dollars.
Worked example
Assume $15,000 starting balance, $500 monthly contributions, 7% gross annual return, and a 30-year horizon. Compare a 0.10% all-in fee path with a 1.00% path.
Both scenarios use the same contribution and return inputs; only the fee wedge differs. The higher-fee path typically finishes with a noticeably smaller balance — the gap is the long-run price of structural drag, not a market-timing claim.
If Fund A charges 0.05% and Fund B charges 0.75% inside the same plan, reproduce those percentages rather than a national “average.” Plan menus vary widely.
Match still matters
Skipping an employer match to chase a slightly cheaper IRA can destroy more value than fees save. This tool isolates fee drag; it does not score match formulas, vesting, or loan provisions.
Read the DOL fee-overview and expense-ratio guides for context on what “high” means inside a category.
Assumptions
- User-set gross return applies equally before fee subtraction — not a forecast.
- Fees modeled as a simple annual drag (expense ratio / admin style), not every revenue-sharing nuance.
- Contributions treated as end-of-period additions in a simplified annual or monthly loop.
- No taxes on distributions, Roth vs traditional differences, or loan defaults.
- Not investment advice or a recommendation to leave a plan.
Related guides
Deeper explainers that sit behind this calculator’s math:
- Expense Ratios Compound: The Quiet Cost Inside 401(k)s and Funds — How a 0.05% vs 1.00% expense ratio can change retirement balances over 20–30 years.
- 401(k) Fees Overview: Where Retirement Friction Hides — Admin fees, fund expense ratios, and advice fees — a US overview for plan participants.
FAQ
Frequently asked questions
Is return guaranteed? +
No. Gross return is an assumption you set so fee differences can be isolated.
Where do I find my expense ratio? +
Plan fee disclosures and fund prospectuses. Prefer primary documents over blog averages.
Does a lower fee guarantee a higher balance? +
Lower structural drag helps all else equal. Fund selection, allocation, and contribution rate still dominate outcomes.