401(k) Fee Calculator: Expense Ratio Cost Over Time
See how much a higher fund fee costs you in retirement savings over the years.
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How to do it
- 1Step 1: Open 401(k) Fee Calculator: Expense Ratio Cost Over Time and add your input
Type your numbers or text, add your file, or pick the options you need. Nothing is uploaded: everything stays in your browser.
- 2Step 2: What 401(k) Fee Calculator: Expense Ratio Cost Over Time does
See how much a higher fund fee costs you in retirement savings over the years.
- 3Step 3: Read the result and compare
The result appears at once. Change one value to see how the answer moves, then keep the figure that fits your case.
- 4Step 4: Copy or save it
Copy the result or download it. For an important decision, confirm it with the official source or an adviser.
About this tool
Enter your balance, yearly savings, the return before fees, the number of years and two fee levels. The tool shows the balance with each fee, the difference in dollars and as a percentage, and the part of your growth that goes to fees.
Why fees matter
A fee of 1% sounds small, but it is taken every year from the whole balance, so it compounds. A 1% fee instead of 0.1% can reduce the final balance by roughly 15% to 20% over 30 years.
How the tool works
Both balances grow with the same gross return minus the fee, using monthly contributions and monthly compounding. The 'fees paid' row compares the 1% account with a no-fee account.
Where to look
The expense ratio is in the fund's prospectus or on your plan website. Plans can also charge administration fees; add them to the ratio. Index funds in a good plan often cost below 0.1%.
Worked example
$50,000 saved plus $12,000 a year for 30 years at 7% before fees: with a 1% fee the balance is about $1,305,600, with a 0.1% fee it is about $1,590,100. The higher fee costs $284,400, or 17.9% of the cheaper balance.
Tips for best results
Check every box before you rely on a result, because one wrong digit changes the whole answer. Use the exact figures from your payslip, bill, certificate or contract, and keep a note of the date you calculated. Rates, thresholds and rules change from time to time, so for tax, fees and legal matters treat the output as an estimate and confirm with the official source named on this page. You can run as many scenarios as you like; nothing is saved or sent, and refreshing the page clears the boxes.
Quick facts
Frequently asked questions
Is 1% a realistic fee?
Many actively managed funds charge about 0.5% to 1%, index funds 0.03% to 0.2%, and some plans add administration fees.
Does the fee come out of the return?
Yes. It is deducted from the fund's assets, so you see a lower return rather than a bill.
What return should I use?
A return before fees. Past returns are not a guarantee, so try a few values.
Can I change the funds in my plan?
Usually yes. Compare fund expense ratios and move to lower-cost options of similar kind.