Retirement tool · runs in your browser
401(k) Fee Impact Calculator
See how plan fees erode your retirement savings over time. Compare expense ratios from 0.25% to 2.0% and project the real cost of investment fees.
- Up to 2.0%
- Highest fee tier modeled
- 28%
- Balance cut, 1pt higher fees, 35yr (DOL)
This 401(k) fee impact calculator projects how expense ratios from 0.25% to 2.0% compound against your balance over time, entered as your current balance, years to retirement, and expected return. According to the U.S. Department of Labor, a 1-percentage-point higher fee can cut a 35-year balance by roughly 28%. The calculator runs entirely in your browser; enter your own numbers to see the projection.
How this calculator works
This tool compares your projected 401(k) balance at retirement with and without plan fees. It uses the formula for compound growth with annual contributions, applying the expense ratio as an annual drag on returns. The "fee cost" represents the difference between the gross-return portfolio and the net-return portfolio over your chosen time horizon.
According to the U.S. Department of Labor's "A Look at 401(k) Plan Fees", a 1 percentage-point increase in fees can reduce a retirement account balance by roughly 28% over 35 years, the same worked example this calculator's defaults are modeled on. DOL Form 5500 filings require sponsors to disclose plan-level expenses on Schedule C, but PlainRetire's own database tracks plan assets and participants, not fee-level detail, so this calculator runs entirely on the assumptions you enter, not a database lookup. See our Data Methodology for what PlainRetire's Form 5500 data does and doesn't cover.
Understanding expense ratios
The average 401(k) plan charges 0.50% to 1.00% in total plan costs according to the BrightScope/ICI 401(k) Fee Report. Low-cost index fund plans average 0.25%, while plans loaded with actively managed funds and revenue-sharing arrangements can exceed 1.50%. Under ERISA Section 404(a), plan fiduciaries must ensure that fees are "reasonable" relative to services provided, but reasonable is not precisely defined, leaving participants to compare costs themselves.
Source: BrightScope, The BrightScope/ICI 401(k) Fee Report, 2023
Frequently asked questions
- What counts as a plan fee? Investment expense ratios, administrative fees, recordkeeping costs, and any revenue-sharing arrangements. All-in cost is what matters.
- Can I negotiate my 401(k) fees? Not directly as a participant. However, large plans (over 1,000 participants) tend to have lower per-participant costs due to economies of scale. The Plan Rankings page shows fee distributions by plan size.
- What is a reasonable expense ratio? The Department of Labor considers plans below 0.50% all-in cost to be competitive. Plans above 1.00% warrant scrutiny and potential fiduciary review.
What to do with this
Ways to act beyond the calculator.
- Large plans (over 1,000 participants) tend to have lower per-participant costs due to economies of scale, see how plan size breaks down nationally. Largest 401(k) plans
- Your plan's actual expense ratio is in its Summary Plan Description or annual fee disclosure, not this calculator, it only models the scenario you enter. Read the methodology
- Compare how a 401(k) differs structurally from a defined-benefit pension before assuming fee impact alone tells the full story. 401(k) vs. pension
This calculator runs entirely in your browser using the formulas and assumptions described on this page; it does not read from or write to PlainRetire's plan database. See our editorial standards & corrections policy, the methodology behind these numbers, or report a data error.