💼 401(k) Calculator
Calculate your 401(k) retirement savings
Typical: 5-15% of salary
Common: 50% match up to 6%
How to Use This Calculator
Enter Current Balance and Salary
Input your current 401(k) balance (if any) and your annual salary. This forms the base for calculations.
Enter Contribution and Match Rates
Enter your contribution percentage (typically 5-15% of salary) and your employer's match percentage (e.g., 50% match up to 6% means enter 50%).
Enter Expected Return and Years
Enter your expected annual return (typically 6-8% for diversified portfolios) and years until retirement.
Review 401(k) Projection
See your projected 401(k) balance at retirement, total contributions (yours and employer's), and interest earned. Use this to plan your retirement savings strategy.
Formula
Future Value = Current Balance × (1 + r)^n + PMT × [((1 + r)^n - 1) / r]
Where:
• Current Balance = Existing 401(k) balance
• PMT = Monthly contribution (employee + employer match)
• r = Monthly interest rate (Annual Rate ÷ 12)
• n = Number of monthly periods (Years × 12)
Example Calculation:
If current balance $50,000, salary $75,000, contribution 6%, employer match 50% up to 6%, return 7%, 30 years:
• Employee contribution = $75,000 × 6% = $4,500/year = $375/month
• Employer match = $375 × 50% = $187.50/month
• Total monthly = $562.50/month
• Future value: ~$952,000
About 401(k) Calculator
A 401(k) calculator helps you project your retirement savings with employee contributions, employer matching, and compound interest. 401(k) plans are employer-sponsored retirement plans that allow you to contribute a percentage of your salary, often with employer matching contributions. Contributions are typically tax-deferred (traditional 401k) or made with after-tax dollars (Roth 401k). This calculator shows you how your 401(k) balance will grow over time with regular contributions and employer matching.
When to Use This Calculator
- Retirement Planning: Plan for retirement savings with 401(k)
- Contribution Planning: Determine optimal contribution amount
- Employer Match: Understand impact of employer matching
- Goal Setting: Set retirement savings goals
Understanding 401(k) Plans
- Employee Contributions: You contribute a percentage of salary (up to annual limit)
- Employer Match: Many employers match a portion of your contributions (free money!)
- Tax Benefits: Traditional 401k is tax-deferred, Roth 401k is tax-free in retirement
- Contribution Limits: 2024 limit: $23,000 ($30,500 if 50+)
- Vesting: Employer match may have vesting requirements
Why Use Our Calculator?
- ✅ Retirement Projection: See projected balance at retirement
- ✅ Employer Match Impact: See how employer match boosts savings
- ✅ Contribution Analysis: Understand impact of contribution changes
- ✅ Goal Planning: Plan for retirement savings goals
- ✅ 100% Free: No registration or payment required
Frequently Asked Questions
What is a 401(k)?
A 401(k) is an employer-sponsored retirement plan that allows you to contribute a portion of your salary to a retirement account. Contributions are often matched by your employer (e.g., 50% match up to 6% of salary). 401(k) plans offer tax benefits - traditional 401k contributions are tax-deferred (reduce taxable income now, pay taxes in retirement), while Roth 401k contributions are made with after-tax dollars (tax-free withdrawals in retirement).
How much should I contribute to my 401(k)?
Contribute at least enough to get the full employer match (free money!). Beyond that, aim for 10-15% of salary if possible, up to the annual limit ($23,000 in 2024, or $30,500 if 50+). The more you contribute early, the more time your money has to grow with compound interest. Use this calculator to see how different contribution rates affect your retirement balance.
What is employer matching?
Employer matching is when your employer contributes money to your 401(k) based on your contributions. For example, if your employer offers "50% match up to 6%", they'll contribute 50 cents for every dollar you contribute, up to 6% of your salary. Employer matching is essentially free money - always contribute enough to get the full match!
What's the difference between traditional and Roth 401(k)?
Traditional 401(k) contributions are made with pre-tax dollars (reduce your taxable income now) and are taxed when withdrawn in retirement. Roth 401(k) contributions are made with after-tax dollars (no tax reduction now) but withdrawals are tax-free in retirement. Choose based on whether you expect to be in a higher or lower tax bracket in retirement. Many plans allow you to contribute to both.