401(k) Retirement Calculator

To use this 401(k) calculator:

1. Enter your current age and retirement age to set the investment time horizon.
2. Enter your current 401(k) balance (check your latest statement).
3. Enter your annual salary before taxes.
4. Set your employee contribution rate (the percentage of salary you contribute).
5. Set your employer match rate and match limit to model your company's matching policy.
6. Adjust the annual salary increase to account for raises over time.
7. Set the expected annual return (7% is a common long-term average for diversified stock portfolios).

Results update instantly to show your projected balance, contribution totals, investment growth, and estimated monthly retirement income.

A 401(k) retirement calculator projects the future value of your 401(k) account based on your current balance, annual contributions, employer matching, salary growth, and expected investment returns. It helps you understand how much money you may have available when you retire.

The 401(k) is one of the most powerful retirement savings vehicles available to American workers due to its tax-deferred growth, employer matching, and high contribution limits. This calculator models year-by-year compounding growth to give you a realistic projection of your retirement savings.

The calculator uses year-by-year compounding with the following logic for each year:

• Employee Contribution = Salary × Employee Rate
• Employer Contribution = Salary × Employer Match Rate (applied only up to the match limit of salary)
• End-of-Year Balance = (Previous Balance + Employee Contribution + Employer Contribution) × (1 + Annual Return)
• Next Year Salary = Current Salary × (1 + Salary Increase Rate)

This process repeats for each year until retirement. The monthly retirement income is calculated using the 4% rule: Balance × 0.04 / 12.

Example 1: Age 30, retire at 65, $25,000 current balance, $75,000 salary, 10% contribution, 4% employer match (up to 6%), 3% annual raises, 7% return: Projected balance at 65 is approximately $1,550,000. Monthly retirement income (4% rule) is approximately $5,167.

Example 2: Age 40, retire at 65, $100,000 current balance, $100,000 salary, 15% contribution, 5% employer match (up to 6%), 2% annual raises, 7% return: Projected balance at 65 is approximately $1,640,000. Monthly retirement income is approximately $5,467.