401(k) Retirement Calculator

401(k) Retirement Calculator: Plan Your Future Savings

A 401(k) retirement calculator helps you estimate how much your retirement savings will grow over time. By accounting for your contributions, employer matching, and compound investment returns, you can project your balance at retirement and adjust your savings strategy accordingly.

What Is a 401(k) Plan?

A 401(k) is an employer-sponsored retirement savings account that allows employees to contribute pre-tax dollars from their paycheck. Many employers offer matching contributions up to a percentage of your salary, which is essentially free money added to your retirement savings.

Key Inputs

• Current Age & Retirement Age: Determines how many years your savings have to grow.
• Current Balance: Your existing 401(k) account balance.
• Annual Contribution: The total amount you contribute each year.
• Employer Match: The percentage your employer matches (e.g., 50% up to 6% of salary).
• Expected Return: The average annual growth rate of your investments (historically ~7% for diversified portfolios).

How the Calculation Works

The projected balance is calculated using the future value formula:

FV = PV × (1 + r)^n + PMT × ((1 + r)^n − 1) / r

Where PV is your current balance, r is the annual return rate, n is the number of years, and PMT is your total annual contribution (personal + employer match).

The Power of Employer Matching

Always contribute at least enough to capture your full employer match. A 50% match up to 6% of a $70,000 salary adds $2,100 per year in free contributions — compounded over 30 years at 7%, that grows to over $200,000.

2024 Contribution Limits

• Employee limit: $23,000 per year
• Catch-up (age 50+): additional $7,500
• Total limit (including employer): $69,000