401(k) Retirement Calculator
Project your 401(k) balance at retirement — contributions, employer match and compound growth, with a contributions-vs-growth breakdown.
170 views
How a 401(k) Grows
Three engines drive a 401(k): your contributions (a percentage of salary, pre-tax), the employer match (commonly 50-100% of your contribution up to 3-6% of salary — free money you should always capture), and compound growth. This calculator compounds monthly at your expected return (the S&P 500 has averaged about 10% nominal, ~7% after inflation, over the long run) and shows how much of the final balance comes from money you put in versus market growth.
Starting early matters more than contributing more: $500/month from age 25 at 7% reaches about $1.2M by 65, while the same amount from 35 reaches about $567K — half the time in the market costs more than half the outcome.
Frequently Asked Questions
How much should I contribute to my 401(k)?
At minimum, enough to capture the full employer match — skipping it forfeits an instant 50-100% return. A common overall target is 10-15% of gross salary including the match.
What are the 401(k) contribution limits?
The IRS sets an annual employee limit (in the low $20,000s, adjusted most years) plus a catch-up allowance for age 50+. Employer match does not count against your employee limit. Check the current year's IRS figure.
What return should I assume?
Long-run U.S. stock returns average ~10% before inflation, ~7% after. A conservative plan uses 5-6%; an all-stock portfolio may use 7-8%. Lower your assumption as you approach retirement and shift toward bonds.
Traditional or Roth 401(k)?
Traditional contributions cut taxes now and are taxed at withdrawal; Roth is taxed now and withdrawn tax-free. Roth tends to win if you expect a higher tax bracket in retirement; the projected balance grows the same either way.
Similar Tools
Report a Problem
401(k) Retirement Calculator