401(k) Calculator
Calculate how your 401(k) retirement savings will grow over time. Factor in employer matching, contribution limits, and investment returns.
Your Information
Enter your details to calculate your 401(k) projections
Employer Match
Configure your employer's matching contribution policy
Percentage of your contribution that employer matches
Maximum salary percentage employer will match
Understanding Your 401(k)
A 401(k) is an employer-sponsored retirement savings plan that allows you to contribute pre-tax dollars from your paycheck. The money grows tax-deferred until withdrawal in retirement, potentially giving you decades of compound growth.
Key Benefits: Tax-deferred growth, potential employer matching, automatic payroll deductions, and high contribution limits compared to IRAs.
Employer Match Explained
| Match Type | Example | What It Means |
|---|---|---|
| 100% up to 3% | $75k salary | Contribute 3% ($2,250), get $2,250 free |
| 50% up to 6% | $75k salary | Contribute 6% ($4,500), get $2,250 free |
| 100% up to 6% | $75k salary | Contribute 6% ($4,500), get $4,500 free |
| Dollar-for-dollar up to 4% | $75k salary | Contribute 4% ($3,000), get $3,000 free |
* Always contribute at least enough to get the full employer match. It's essentially free money!
Traditional vs Roth 401(k)
- Traditional:Pre-tax contributions, tax-deferred growth, taxed on withdrawal
- Roth:After-tax contributions, tax-free growth, tax-free withdrawals
- Tip:If you expect higher taxes in retirement, Roth may be better
- Note:Employer matches are always pre-tax, even in Roth 401(k)
Important Considerations
- !10% early withdrawal penalty before age 59½
- !Required Minimum Distributions (RMDs) start at 73
- +Loans may be available (check plan rules)
- +Can rollover to IRA when leaving employer
Contribution Strategies by Age
| Age Group | Recommended % | Strategy |
|---|---|---|
| 20s | 10-15% | Start early, aggressive allocation, maximize time |
| 30s | 15-20% | Increase contributions, balance growth and stability |
| 40s | 20-25% | Peak earning years, maximize savings |
| 50+ | Max + Catch-up | Use catch-up contributions ($7,500 extra) |
Millionaire Math
How much you need to save monthly to reach $1 million by age 65, assuming 7% average annual return:
Starting at 25
$381/mo
40 years to grow
Starting at 35
$820/mo
30 years to grow
Starting at 45
$1,920/mo
20 years to grow
Starting at 55
$5,778/mo
10 years to grow
The earlier you start, the less you need to save monthly due to compound growth.
Tips to Maximize Your 401(k)
- 1.Get the full match: Never leave free money on the table.
- 2.Increase annually: Raise your contribution by 1% each year.
- 3.Rebalance regularly: Keep your asset allocation on target.
- 4.Lower fees: Choose low-cost index funds when available.
- 5.Don't cash out: Roll over to IRA when changing jobs.
- 6.Use catch-up: After 50, contribute extra $7,500 annually.