401(k) calculator

Use this 401k calculator to model employee contributions, possible employer contributions, assumed investment growth, and time while accounting for plan rules, taxes, fees, and changing returns.

Projected 401(k) balance in 30 years

Total$889,146
Your contribution / month
$375.00
Employer contribution / month
$187.50
Value of the match at retirement
$228,745
Investment growth
$661,646
Projected 401(k) balance in 30 years
$889,146

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The short answer

Enter your salary, the percentage you contribute, your employer's match and an expected return. The calculator projects your balance at retirement and splits it into your own contributions, employer contributions and investment growth, so you can see what the match is worth.

The match is the first priority

A 50% match on the first 6% of salary is an immediate 50% return on that slice of money, before the market does anything. Contributing less than the match threshold leaves that money behind permanently — it does not roll over to next year.

Vesting and limits

  • Employer contributions may vest over several years; your own contributions are always yours.

  • The IRS caps annual employee contributions and raises the cap most years — check the current figure before setting your rate.

  • Traditional contributions reduce taxable income now and are taxed on withdrawal; Roth 401(k) contributions do the reverse.

How a 401(k) Calculator Projects Your Retirement Balance

A retirement savings calculator estimates the future value of your account by compounding contributions and employer matches over time. You input your current age, retirement age, current balance, annual contribution, employer match percentage, and expected annual return.

  • Current balance grows through compound interest even without new contributions.

  • Annual contributions create a growing stream that compounds independently each year.

  • Employer match percentage typically applies up to a specific salary threshold.

  • Expected return rate dramatically affects long-term projections due to exponential growth.

Contribution Limits and Account Type Differences

The 401k limit for 2024 is $23,000 for employee deferrals if you're under 50, plus $7,500 in catch-up contributions for those 50 and older. These limits apply to your pre-tax and Roth 401k contributions combined, not separately.

  • Employee deferral limits apply equally to traditional and Roth 401k contributions combined.

  • Employer contributions don't count toward the employee deferral limit but affect total limits.

  • Catch-up contributions for age 50+ allow an additional $7,500 annually beyond standard limits.

  • Self-employed individuals using a solo 401k can maximize both employee and employer contribution streams.

Comparing Roth 401(k) vs Traditional Pre-Tax Contributions

When evaluating Roth IRA vs 401k or Roth versus traditional 401k contributions, tax treatment creates different retirement outcomes from identical contribution amounts. Traditional contributions reduce taxable income now but create fully taxable withdrawals later.

  • Traditional contributions reduce current taxable income, lowering your tax bill this year.

  • Roth contributions provide no immediate tax benefit but eliminate taxes on future withdrawals.

  • Tax-free growth in Roth accounts means investment gains never face taxation.

  • Comparing net after-tax balances requires estimating your retirement tax bracket accurately.

Modeling Employer Match and Vesting Schedules

Employer match formulas vary widely. Common structures include dollar-for-dollar up to 3% of salary, 50 cents per dollar up to 6%, or tiered matches that change at different contribution levels.

  • Match percentage typically applies only up to a specified percentage of your salary.

  • Contribute at least enough to capture the full employer match available to you.

  • Vesting schedules mean you forfeit unvested employer contributions if you leave early.

  • Graded vesting provides partial ownership that increases annually until full vesting occurs.

Adjusting Projections for Loans, Withdrawals, and Salary Growth

A 401k loan lets you borrow up to 50% of your vested balance or $50,000, whichever is less. While you repay with interest, the outstanding loan balance stops earning market returns.

  • Loan balances stop earning investment returns, creating opportunity cost beyond interest payments.

  • Defaulted loans become taxable distributions plus 10% penalty if you're under 59½.

  • Percentage-based contributions automatically increase as your salary grows over your career.

  • Annual raises of even 2-3% compound significantly over 20-30 year careers.

The formula

Monthly contribution = (salary ÷ 12) × your rate; employer adds (salary ÷ 12) × min(your rate, match limit) × match percentage. Both grow at (1 + r/12) each month.

FAQ

How the 401k calculation works

A 401k projection starts with the current balance and adds planned employee and employer contributions over time. It then applies an assumed rate of return, usually with periodic compounding. Actual results depend on investment performance, fees, contribution timing, vesting, and withdrawals. Review the current 401k limit and your plan documents because IRS limits and employer contribution formulas can change.

Traditional 401k contributions generally receive different current tax treatment from roth 401k contributions, while qualified withdrawal rules also differ. A 401k plan may offer limited investment choices and an employer match, whereas an IRA generally offers a separate contribution limit and broader provider selection. A solo 401k is designed for eligible self-employed individuals. A 403b plan and the federal TSP have their own rules and should not be treated as identical accounts.

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