401(k) Calculator
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What Your Result Means
- Total at Retirement: The projected balance in your 401(k) on the day you retire, combining your contributions, employer match, and compounded investment growth.
- Your Contributions: The cumulative amount deducted from your paychecks over the saving period, before any investment returns.
- Employer Match: The total your employer contributes on your behalf. This is essentially free money — contributing at least enough to capture the full match is generally recommended.
- Investment Growth: The portion of your balance generated by compounded returns on the invested total. Over long time horizons, growth typically exceeds the sum of all contributions.
How This Calculator Works
You enter your current age, retirement age, current balance, annual salary, contribution rate, employer match rate, expected annual raise, and expected annual return. Each year, the tool adds your contribution and employer match to the balance, applies the annual return, then grows your salary by the raise percentage. It assumes contributions are made annually and returns compound once per year. IRS contribution limits, vesting schedules, fees, and taxes are not modeled.
Quick Questions
How much should I contribute to my 401(k)?
At minimum, contribute enough to capture your full employer match — otherwise you're leaving free money on the table. Many financial planners suggest saving 10–15% of gross income for retirement overall, including any employer match.
What is a typical employer match?
The most common structure is a 50% match on the first 6% of salary you contribute, effectively adding 3% of your salary. Some employers match dollar-for-dollar up to a cap. Check your plan's summary plan description for exact terms.
Does this account for IRS contribution limits?
No. For 2025, the employee elective deferral limit is $23,500 ($31,000 if age 50+, or $34,750 if age 60–63 thanks to the SECURE 2.0 "super catch-up"). This calculator does not cap contributions, so very high salaries or contribution rates may overstate the result. Verify limits with the IRS each year.
Traditional vs. Roth 401(k) — which is better?
Traditional contributions reduce taxable income now but are taxed at withdrawal. Roth contributions are after-tax but grow and withdraw tax-free. The better choice depends on whether you expect a higher or lower tax rate in retirement. Many planners suggest splitting between both if your plan allows it.
What annual return should I assume?
A diversified stock-and-bond portfolio has historically returned around 7–10% annually before inflation, or roughly 5–7% after inflation. Use a conservative estimate (6–7%) for planning purposes, especially if retirement is more than 20 years away.
Sources
- IRS — 401(k) Contribution Limits (annual deferral and catch-up limits)
- U.S. Department of Labor — What You Should Know About Your Retirement Plan (vesting, fiduciary rules, participant rights)
- SEC Investor.gov — 401(k) Investments (investment options and fee disclosure)
Method & review
Estimate only. Results reflect your inputs and standard formulas — they are not financial, tax, legal, health, or investment advice. Verify important decisions with a qualified professional.