401(k) Calculator
See how your 401(k) can grow over time and what you might have at retirement.
Finance
401(k) Calculator
Estimate your 401(k) growth over time.
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Plan for a Secure Retirement
Our 401(k) Calculator helps you project the future value of your retirement savings. This powerful tool factors in your current balance, your regular contributions, your expected annual return, and, crucially, your employer's matching contributions. It's an essential tool for visualizing your long-term growth and ensuring you're maximizing your workplace retirement plan.
The Formulas Explained
The calculation is a combination of:
- Future Value of Your Current Savings: The growth of your starting balance.
- Future Value of Your Contributions: The growth of the money you put in each month.
- Future Value of Employer Contributions: The growth of the 'free money' your employer adds. All components use compound interest formulas to project growth over time.
How to Use the Calculator
- Ages: Enter your current age and your planned retirement age.
- Savings & Contributions: Input your current 401(k) balance and the amount you contribute monthly.
- Return & Match: Enter your estimated annual return and the details of your employer's match (e.g., they match 50% of your contributions up to 6% of your salary).
Real-World Example
A 30-year-old has $50,000 in their 401(k) and contributes $500/month. Their employer matches 50% of contributions up to 6% of their $60,000 salary. They expect a 7% annual return and plan to retire at 65.
- Your Contribution: $500/month
- Employer Match: Your contribution is 10% of salary ($500/$5000), which is more than 6%. So the employer matches 50% of the first 6% of your salary. Match = (60000 * 0.06) * 0.50 = $1800/year, or $150/month.
- Total Monthly Investment: $500 + $150 = $650.
- The calculator will project a total nest egg of over $1.6 million by age 65.
Frequently Asked Questions (FAQ)
- What is an employer match? It's free money! An employer match is when your company contributes a certain amount to your retirement account based on how much you contribute. It's one of the best ways to accelerate your savings.
- What is a realistic annual return? Over the long term, a diversified stock portfolio has historically returned an average of 7-10% per year, though this is not guaranteed. Using a more conservative rate like 6% can provide a safer estimate.
- Does this calculator include taxes? No. This shows the growth of your pre-tax 401(k). You will owe income taxes on withdrawals you make in retirement.