401k Calculator
Use this free 401k calculator to project your retirement balance from your salary, contribution, employer match and annual return. Type in your numbers and the projected balance at retirement updates straight away.
Years to retirement:
Your contribution per year: $
Employer match per year: $
Total contributed per year: $
Projected balance at retirement: $
Total of your own contributions: $
Total employer match: $
Total growth: $
Estimates only – not financial advice; 401k rules and limits change, check your plan documents. Nothing you type is saved or sent anywhere.
How to use this 401k calculator
Step 1: Type in your current age and the age you plan to retire. The difference between them is the number of years your money has to grow, and it is the single biggest factor in the final balance.
Step 2: Add your current 401k balance, if you have one, and your annual salary. Then set your contribution as a percentage of your salary, and your employer's match: the match rate and the percentage of salary the match applies to.
Step 3: Set your expected annual return and your annual salary growth, if any, then read the result. The 401k calculator shows your yearly contribution, the employer match, the projected balance at retirement, and how much of that balance came from you, from your employer, and from growth.
Worked example: age 35 to 65 on a 60,000 dollar salary
Take a worker aged 35 who plans to retire at 65, so there are 30 years to retirement. The starting balance is zero, the salary is 60,000 dollars a year, and the worker contributes 10 percent, which is 6,000 dollars a year. The employer matches 50 percent of the first 6 percent of salary, which is 1,800 dollars a year.
That gives a total of 7,800 dollars a year going into the 401k. With an expected annual return of 7 percent, and contributions made at the end of each year, the balance at retirement is 736,794.13 dollars. The worker's own contributions over 30 years add up to 180,000 dollars, and the employer match adds up to 54,000 dollars.
The rest is growth: 502,794.13 dollars. In other words, more than two thirds of the final balance comes from investment growth, not from money paid in. That is why starting early matters so much, because growth needs time to build on itself, year after year.
Why the employer match matters
The employer match is free money. When your employer offers to put money into your 401k for every dollar you contribute, up to a limit, that money is part of your pay, and skipping it leaves part of your pay on the table. In the example above, the match adds 1,800 dollars a year, or 54,000 dollars over 30 years, before any growth on it.
Most plans only match contributions up to a limit, often around 6 percent of salary. That is why many advisers suggest contributing at least enough to get the full match, even if you cannot afford to save much more. Below that level, every extra percent you contribute is matched, so the return on that money is higher than the return on money above the limit.
Check your plan documents to find your own match rate and limit, because they differ from one employer to the next. Some employers match dollar for dollar up to a limit, others match 50 cents on the dollar, and some match nothing at all. Type your own figures into this 401k calculator to see what the match is worth to you over your working life.
What the return rate does
A small change in the return rate makes a big change over 30 years, because growth compounds. The balance does not just grow by the return each year, it grows on last year's growth as well, so the effect builds up over time. The difference between 5 percent and 7 percent may look small in one year, but over three decades it can change the final balance by hundreds of thousands of dollars.
That is also why the return rate is the least certain number in the calculation. Nobody knows what the market will return over the next 30 years, and a 401k that holds shares will go up and down along the way. The balance shown here is a smooth projection, not a promise, and real balances will wobble from year to year.
A sensible approach is to try a range. Run the calculation at 5 percent, then at 7 percent, then at 9 percent, and see the spread of results. If your plan works at 5 percent, it is likely to work at higher returns too. If it only works at 9 percent, you may need to save more, retire later, or change your target.
Frequently asked questions
What is a 401k?
A 401k is a retirement savings plan offered by many employers in the United States. You put part of your salary into the plan, often before tax, your employer may add a match, and the money is invested until you retire. The name comes from the section of the US tax code that created it.
How much should I contribute?
Start with at least enough to get the full employer match, whatever that is at your workplace. Many people then aim for 10 to 15 percent of salary in total, including the match, but the right figure depends on your age, your salary and when you want to retire. Try different contribution rates in this calculator and see the difference.
What is the employer match?
The employer match is money your employer adds to your 401k based on what you contribute. A common match is 50 percent of the first 6 percent of salary, which means that if you contribute 6 percent, your employer adds 3 percent. Some employers match more, some less, and the details are in your plan documents.
What return rate should I use?
Seven percent is a common long-term planning figure, but past returns do not promise future ones. Try 5 percent and 9 percent to see the range. A lower figure gives a more cautious plan, and a higher figure shows what could happen if markets do well.
Is this exact?
No, it is an estimate. Real balances depend on market returns, fees and your plan's rules. Your salary will change, your contributions may change, and the market will not return the same figure every year. Use this calculator to plan, and check your real balance and plan documents regularly.