🏦 401(k) Retirement Calculator

This calculator uses the standard future value formula for compound interest with periodic contributions: FV = PV × (1 + r)^n + PMT × [((1 + r)^n − 1) / r], where FV is the future value, PV is your current 401(k) balance, PMT is your total annual contribution (your contribution plus the employer match), r is the expected annual return rate as a decimal, and n is the number of years until retirement.

The employer match is calculated as follows: first, determine the matchable amount, which is the lesser of your contribution and the salary cap (your salary multiplied by the match cap percentage). Then multiply that by the employer match rate. For instance, if your salary is $80,000, your employer matches 50% up to 6% of salary, and you contribute $12,000, the matchable portion is $4,800 (6% of $80,000), and the employer contributes $2,400 per year (50% of $4,800).

The calculator then projects the year-by-year growth, showing the balance every five years so you can see how compounding accelerates over time. It also flags whether your contribution exceeds the IRS annual limit for 2024.

Limits are set by the IRS and typically increase annually with inflation. Always verify current limits on the IRS website or with your plan administrator.

Example: Sarah is 30 years old and plans to retire at 65. She has $25,000 already saved in her 401(k), earns an $80,000 salary, and contributes $12,000 per year. Her employer offers a 50% match on up to 6% of her salary. She expects a 7% annual return.

Employer match calculation: 6% of $80,000 = $4,800 matchable. Employer contributes 50% of $4,800 = $2,400 per year.

Total annual contribution: $12,000 (Sarah) + $2,400 (employer) = $14,400.

Over 35 years: Using the future value formula, her projected balance at age 65 is approximately $2,260,000. Of this, $420,000 is from her own contributions, $84,000 is from the employer match, and the rest — about $1,730,000 — is investment growth. This example illustrates how compounding over decades does most of the heavy lifting.

1. Enter your current age and the age you plan to retire — the calculator determines your saving horizon from these two values.
2. Input your current 401(k) balance and annual salary, so the employer match can be calculated accurately.
3. Enter your annual contribution amount and check it against the IRS limit warning if displayed.
4. Input the employer match percentage and match cap (percentage of salary) from your plan documents.
5. Set your expected annual return rate and click 'Project My 401(k)' to see your projected balance, total contributions, employer match value, investment growth, and a year-by-year breakdown table.

What is a 401(k) employer match?

An employer match is money your company adds to your 401(k) based on how much you contribute. The most common formula is a 50% match on up to 6% of your salary. If you earn $80,000 and contribute at least $4,800, your employer adds $2,400. This is free money that significantly boosts your retirement savings, so you should always contribute enough to capture the full match.

What is the 2024 401(k) contribution limit?

For 2024, the employee contribution limit is $23,000 if you are under 50. If you are 50 or older, you can make an additional catch-up contribution of $7,500, bringing your total to $30,500. The total limit including employer contributions is $69,000 ($76,500 for those 50+). These limits are adjusted by the IRS periodically to account for inflation.

Should I choose traditional or Roth 401(k)?

With a traditional 401(k), contributions are pre-tax, lowering your current taxable income, and you pay taxes on withdrawals in retirement. With a Roth 401(k), contributions are after-tax, but withdrawals in retirement are tax-free. If you expect to be in a higher tax bracket in retirement, Roth may be better; if you expect a lower bracket, traditional may save more. Many plans let you split contributions between both.

What happens to my 401(k) if I change jobs?

You generally have four options: leave it in your former employer's plan (if allowed), roll it over to your new employer's plan, roll it over to an IRA, or cash it out. Cashing out is almost always the worst choice because you face income taxes plus a 10% early withdrawal penalty if under 59½. A rollover preserves the tax-deferred status and keeps your money growing.

What return rate should I use?

Historically, a diversified portfolio of mostly stocks has returned roughly 7–10% per year on average before inflation. Using 6–7% is a conservative but realistic estimate for long-term planning. Avoid using the best years as your assumption; markets have downturns, and the sequence of returns matters, especially near retirement.

Is my 401(k) balance guaranteed at retirement?

No. A 401(k) is an investment account, and its value depends on market performance. Unlike a traditional pension, the balance can rise and fall. The projections from this calculator are estimates based on a steady return rate, but actual returns fluctuate year to year. Diversification and a long time horizon help reduce risk.

This tool is for informational purposes only and does not constitute financial advice. Consult a qualified financial professional for advice specific to your situation.

Always contribute at least enough to get the full employer match — leaving free money on the table is the most common and most costly mistake in 401(k) planning. If you are 50 or older, take advantage of the catch-up contribution to accelerate your savings. Increase your contribution rate whenever you get a raise, so you never feel the lifestyle adjustment. Be realistic about expected returns: historically, a diversified stock-heavy portfolio has averaged around 7–10% annually before inflation, but future returns may differ. Finally, remember that 401(k) withdrawals are taxed as ordinary income, so your effective retirement spending power will be lower than the account balance suggests.