401(k) Retirement Savings Calculator
401(k) Retirement Calculator
Basic Information
Projections
Retirement Summary
Quick Tips
2025 contribution limit: $23,500 (under 50)
Max employer match to get free money
Start early - compound interest is powerful
The 401(k) calculator projects how much your retirement account will grow based on your current balance, monthly contribution, employer match, expected return, and years until retirement. It shows the full impact of tax-deferred compounding on your final balance.
How a 401(k) Grows
A 401(k) is a tax-advantaged employer retirement plan. Contributions come out of your paycheck before income tax, reducing your taxable income today. The money grows tax-deferred until withdrawal in retirement. Employer matching is the closest thing to free money in personal finance — always contribute at least enough to capture the full match.
Future Value = PV x (1+r)^n + PMT x [(1+r)^n - 1] / r
PV = current balance. r = monthly return. n = months. PMT = monthly contribution including employer match. At 7% annual return, money doubles roughly every 10 years.
2024 401(k) Contribution Limits
| Type | 2024 Limit | Notes |
|---|---|---|
| Employee contribution (under 50) | $23,000 | Pre-tax or Roth |
| Catch-up contribution (age 50+) | $7,500 extra | Total $30,500 |
| Total including employer match | $69,000 | Combined limit |
| Roth 401(k) limit | $23,000 | Same as traditional |
Employer Match: What It Adds
A common match is 50% of employee contributions up to 6% of salary. On a $70,000 salary contributing 6% ($4,200/year), the employer adds $2,100/year. Over 30 years at 7% return, that $2,100/year match alone grows to about $214,000. Never leave employer match unclaimed.
| Salary | 6% Contribution | 50% Match | Annual Value |
|---|---|---|---|
| $50,000 | $3,000 | $1,500 | $4,500/yr |
| $70,000 | $4,200 | $2,100 | $6,300/yr |
| $100,000 | $6,000 | $3,000 | $9,000/yr |
| $150,000 | $9,000 | $4,500 | $13,500/yr |
Traditional vs. Roth 401(k)
Traditional 401(k): contributions reduce taxable income now, withdrawals taxed in retirement. Best if you expect lower tax rates in retirement. Roth 401(k): contributions are after-tax, but withdrawals in retirement are tax-free. Best if you expect higher tax rates in retirement or want tax-free income later. Many advisors recommend using both to hedge against future tax rate uncertainty.
Frequently Asked Questions
How much should I contribute to my 401(k)?⌄
At minimum, contribute enough to get the full employer match. That is a guaranteed 50-100% return on those dollars. Beyond the match, aim for 15% of gross income total (including match). If you started late, aim higher — 20-25% of income.
What is a good 401(k) balance by age?⌄
A common benchmark: 1x your salary by age 30, 3x by 40, 6x by 50, 8x by 60, and 10x by retirement at 67. On a $70,000 salary, that means $70,000 saved by 30 and $700,000 by 67. These are targets, not rules — start wherever you are and increase contributions over time.
Can I withdraw from my 401(k) before age 59.5?⌄
Yes, but early withdrawals face a 10% penalty plus income tax on the amount withdrawn. Some exceptions apply: first home purchase (limited), disability, medical expenses above 7.5% of income, and 72(t) distributions. Most financial advisors recommend avoiding early withdrawals entirely.
What happens to my 401(k) if I change jobs?⌄
You have four options: leave it with the old employer, roll it into your new employer's 401(k), roll it into an IRA, or cash it out (not recommended — triggers tax and penalty). Rolling into an IRA or new 401(k) keeps the money growing tax-deferred with no penalty.
What return rate should I use when projecting my 401(k)?⌄
A 6-7% average annual return is a reasonable conservative assumption for a diversified portfolio of stocks and bonds. The S&P 500 has historically returned around 10% before inflation and 7% after. More stock-heavy allocations can project 7-8%, more bond-heavy allocations should use 5-6%.