401(k) Calculator
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401(k) Details
Projected Balance at Retirement
Enter your 401(k) details to project your retirement balance.
This calculator provides an educational estimate only and is not financial advice. Actual returns, contribution limits, and plan rules vary -- consult your plan administrator or a financial advisor.
Understanding Your 401(k)
A 401(k) is an employer-sponsored retirement account that lets you contribute a percentage of your paycheck before tax, and many employers sweeten the deal with a matching contribution -- essentially free money layered on top of your own savings. This calculator projects how your balance could grow by retirement, factoring in both halves of that equation.
The Employer Match
Most matches are expressed as a rate up to a cap -- e.g. "50% up to 6% of salary" means your employer adds $0.50 for every dollar you contribute, until your own contribution reaches 6% of pay. Contributing at least enough to capture the full match is one of the highest-return moves available to most savers.
Compounding Over Decades
Because 401(k) contributions typically start early in a career and compound for decades, even modest monthly amounts can grow into a substantial balance -- the earlier you start, the more time compounding has to work in your favor.
Raises Compound Your Savings Too
Because contributions are usually a percentage of salary, an annual raise doesn't just grow your paycheck -- it grows your dollar contribution (and your employer's match) every year as well, without you having to do anything.
Pre-Tax Growth
Traditional 401(k) contributions reduce your taxable income today, and the whole balance grows tax-deferred until you withdraw it in retirement, when it's taxed as ordinary income.
Worked Example
Suppose you start with a $20,000 balance, earn a $70,000 salary, contribute 6%, and your employer matches 50% up to 6% of salary, with a 7% expected return over 25 years and no raises:
- Projected balance: approximately $539,796.
- Your contributions: approximately $105,000.
- Employer match: approximately $52,500.
- Total growth: approximately $362,296 -- more than your and your employer's contributions combined.
Where the Balance Comes From
- Your Contributions: $105,000.00
- Employer Match: $52,500.00
- Growth: $362,296.00
A Note on Annual Raises
If you expect regular raises, adding an annual raise percentage models a more realistic trajectory: each year's salary (and therefore each year's contribution and match) grows before the next year's compounding is applied. Using the same example above with a steady 3% annual raise, the projected balance rises to roughly $673,217 -- both your contributions and your employer's match scale up automatically as your pay grows.
Key Takeaways
- Capture the Full Match: Contributing below your employer's match cap leaves free money on the table -- try to contribute at least up to the cap whenever you can.
- Time Is the Biggest Lever: Starting a decade earlier can matter more than a slightly higher contribution rate, thanks to compounding.
- Raises Help Automatically: Because contributions scale with salary, raises quietly boost your retirement savings rate without any extra action from you.
- This Is an Estimate: Real returns vary year to year, and annual contribution limits set by the IRS aren't modeled here -- treat this as a directional projection, not a guarantee.