401(k) Calculator
Enter your current age, retirement age, current balance, annual salary, contribution rate, employer match, and expected annual return to project your 401(k) balance at retirement.
Reviewed by the ToolNestr Editorial Team — July 2026
How your 401(k) growth is projected
The 401(k) projection calculates the future value of periodic contributions with compound growth: FV = PV × (1 + r)^n + PMT × ((1 + r)^n - 1) / r × (1 + r). PV is your current balance, PMT is the annual contribution (yours + employer match), r is the annual return rate, and n is the number of years until retirement.
The power of compound growth means that the earlier you start saving, the more dramatic the results. A 25-year-old who saves $500 per month with a 7% annual return will have over $1.3 million by age 65, while a 45-year-old starting the same savings plan would accumulate only about $250,000. Time is the most valuable asset in retirement planning, which is why financial advisors stress the importance of starting early and contributing consistently.
Worked example
A 30-year-old earning $80,000 with $25,000 saved, contributing 10% with a 5% employer match and 7% annual return until age 65.
About 401(k) planning
A 401(k) is the most powerful retirement savings tool available to most American workers. The combination of pre-tax contributions, tax-deferred growth, employer matching, and high contribution limits makes it the foundation of retirement planning. The key to maximizing your 401(k) is to start early, contribute enough to capture the full employer match, and gradually increase your contribution rate over time. Use the Roth IRA Calculator to compare traditional versus Roth savings strategies, and the Social Security Calculator to estimate your additional retirement income from Social Security benefits.
How to use it
- Enter your current age, retirement age, and current 401(k) balance.
- Enter your salary, your contribution percentage, and employer match percentage.
- Set your expected annual return rate and see your projected retirement balance.
When to use this tool
Use this calculator when setting up your 401(k) to see the long-term impact of different contribution rates, when changing jobs to project the new 401(k) balance, when considering increasing contributions, or when planning your overall retirement strategy.
Tips for 401(k) success
- Always contribute enough to get the full employer match — it's an immediate 50-100% return.
- Increase your contribution by 1-2% annually, especially when you get a raise.
- Choose low-cost index funds with expense ratios under 0.10% for maximum long-term growth.
Early-Career Professional
Start your 401(k) as soon as you're eligible. See how even a modest 6% contribution with full match can grow to over a million dollars by retirement with decades of compound growth.
Mid-Career Saver
Catch up on retirement savings by increasing your contribution rate. Use the calculator to see how a 15-20% contribution rate can close the gap and get you back on track for retirement.
Married Couple
Coordinate 401(k) strategies between spouses. Maximize both matches and consider spousal IRA options to double your household retirement savings capacity.
Job Changer
When switching jobs, decide whether to roll over your old 401(k) to your new employer's plan or to an IRA. Compare fees, investment options, and consolidation benefits.
How to use the 401(k) calculator
Enter your personal info
Input your current age, target retirement age, and current 401(k) balance. If you're just starting, your current balance may be zero.
Set your contribution strategy
Enter your salary, the percentage you plan to contribute, and your employer's match percentage. The match is typically a percentage of your salary, not of your contribution.
See your future balance
The calculator projects your balance at retirement, showing the power of your contributions, employer match, and compound growth over time.
Tips for maximizing your 401(k)
Capture the full employer match first
The employer match is the closest thing to free money in personal finance. If your employer offers a 50% match up to 6% of salary, that's an immediate 50% return on your contribution. Always contribute at least enough to max out the match before considering any other investment.
Increase contributions with every raise
Whenever you get a raise, increase your 401(k) contribution percentage by at least half the raise amount. You won't miss the money since you never had it in your paycheck, and your retirement savings will grow dramatically over your career.
Keep fees low
High expense ratios can cost you hundreds of thousands of dollars over a career. Choose low-cost index funds or target-date funds with expense ratios under 0.10-0.30%. A 1% fee difference on a $500,000 portfolio is $5,000 per year in lost returns.
Related tools
- Roth IRA Calculator — Compare Roth IRA growth versus traditional taxable accounts.
- Social Security Calculator — Estimate your Social Security retirement benefits based on your earnings history.
- Investment Calculator — Project the future value of any periodic investment with compound interest.
Frequently asked questions
What is a 401(k) plan?
A 401(k) is an employer-sponsored retirement savings plan that allows employees to contribute pre-tax dollars from their paycheck. Many employers offer matching contributions, and the money grows tax-deferred until withdrawal in retirement.
How much can I contribute to a 401(k)?
In 2025, the contribution limit is $23,500 for employees under 50, and $31,000 for those aged 50 and over (including $7,500 catch-up contribution). These limits are adjusted annually for inflation.
What is an employer match?
An employer match is free money your employer contributes to your 401(k) based on your contributions. A common match is 50% of your contributions up to 6% of your salary. For example, if you earn $100,000 and contribute 6%, your employer adds $3,000 (50% of $6,000).
What is a good annual return for a 401(k)?
A conservative estimate is 5-7% annual return. A moderate estimate is 7-9%. An aggressive estimate is 9-11%. Historically, the S&P 500 has averaged about 10% annual returns before inflation, but past performance does not guarantee future results.
What happens if I withdraw money before age 59½?
Early withdrawals are subject to a 10% penalty plus ordinary income tax on the distribution amount. Some exceptions apply, such as for first-time home purchases ($10,000 limit), medical hardship, or substantially equal periodic payments.
What is the difference between traditional and Roth 401(k)?
Traditional 401(k) contributions are pre-tax — you get a tax deduction now and pay taxes on withdrawals in retirement. Roth 401(k) contributions are after-tax — no deduction now, but withdrawals in retirement are tax-free. Many employers offer both options.
What is vesting?
Vesting refers to how much of your employer's contributions you actually own. Your own contributions are always 100% vested. Employer matching contributions may vest over time — common schedules include cliff vesting (100% after 3 years) or graded vesting (20% per year starting in year 2).
Should I contribute enough to get the full employer match?
Yes, absolutely. The employer match is free money and an immediate 50-100% return on your contribution. Always contribute at least enough to get the full match before considering other investments.
Can I have multiple 401(k) accounts?
Yes, from different employers. You can contribute to only one 401(k) per year in total (combined limit). When you leave a job, you can roll over the old 401(k) to your new employer's plan or to an IRA.
How are 401(k) withdrawals taxed in retirement?
Traditional 401(k) withdrawals are taxed as ordinary income at your tax bracket in retirement. This makes traditional 401(k)s ideal if you expect to be in a lower tax bracket in retirement. Required Minimum Distributions (RMDs) start at age 73.
Sources & references
This tool uses standard formulas and reference values from:
- • IRS — federal tax brackets, standard deduction and instructions for the tax year. irs.gov
- • U.S. SEC — Investor.gov, compound interest and investment reference material. investor.gov
- • Official national tax authority for the relevant country — link the exact rate schedule used.
Estimates only, not tax or financial advice. Confirm current figures with the official source or a qualified professional.