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401K Calculator

401k Calculator

Estimate your future retirement balance with employer matching

Current Salary ($)

Current 401k Balance ($)

Contribution (%)

Employer Match (%)

Match Limit (%)

Years to Retire

Expected Return (%)

Salary Growth (%)

Estimated Balance at Retirement

Includes employer match and compounding

Total Employer Match

Total Contributions

Total Interest

401k Growth Projection

About the 401K Calculator

A 401(k) grows faster when your employer matches part of your contribution. This calculator projects your balance at retirement including salary growth, employer match and investment returns.

How to use the 401K Calculator

Enter your Current Salary ($) and Current 401k Balance ($).
Enter your Contribution (%), the Employer Match (%) and the Match Limit (%).
Enter Years to Retire, Expected Return (%) and Salary Growth (%).
Press Project My Retirement to see the projected balance.

Formula and method

Each year: employee contribution = salary × contribution %; employer contribution = salary × match % (up to the match limit). The balance then grows by the expected return, and salary grows by the salary growth rate.

Worked example

With a $60,000 salary, a 6% contribution and a 50% match on the first 6%: you contribute $3,600 a year and your employer adds $1,800, so $5,400 goes into the account in year one.

How a match works. Suppose you earn $60,000 and contribute 6%, which is $3,600 a year. If your employer matches 50% of contributions up to 6% of pay, they add $1,800 a year on top. That is an immediate 50% return before any investment growth.

When to use the 401K Calculator

Estimating your 401(k) balance at retirement age from your salary and contribution rate.
Seeing how much employer matching adds over the years.
Testing what happens if you raise your contribution by 1% or 2%.

Common mistakes to avoid

Not contributing enough to earn the full employer match, which is free money.
Assuming a high, steady return. Markets rise and fall, so try several rates.
Forgetting inflation. A large future balance buys less than the same amount today.

Tips

Contribute at least enough to receive the full employer match. It is effectively free money.
Annual IRS contribution limits apply, so check the current limit each year.
Traditional 401(k) contributions reduce taxable income now; withdrawals are taxed later.

Frequently Asked Questions

What is an employer match?

A benefit where your employer adds money to your 401(k) based on what you contribute, for example 50 cents per dollar up to 6 percent of your salary.

When can I withdraw without penalty?

Generally from age 59½. Earlier withdrawals usually face a 10 percent penalty plus income tax, with some exceptions.

What is vesting?

The schedule that decides when the employer's matching contributions become fully yours. Your own contributions are always yours.

Traditional or Roth 401(k)?

Traditional contributions reduce your taxable income now and are taxed when withdrawn. Roth contributions are taxed now and qualified withdrawals are tax-free. The better choice depends on your current and expected future tax rate.