401k Calculator - Plan Your Retirement Savings
Calculate your 401k retirement savings with our comprehensive online calculator. Estimate future value, contributions, employer matching, and create a personalized retirement plan.
Your 401k Projection Results
Total Contributions
Employer Match
Investment Growth
Years to Retirement
How to Use the 401k Calculator
Our 401k calculator helps you estimate your retirement savings growth. Follow these simple steps:
- Enter your current age - This determines how many years you have until retirement
- Set your retirement age - Most people retire between 62-67, but you can choose any age
- Input your current 401k balance - Include any existing savings in your account
- Annual contribution - How much you plan to contribute each year
- Employer match percentage - Many employers match a percentage of your salary
- Annual salary - Used to calculate employer matching contributions
- Expected return rate - Historical stock market average is around 7-10%
- Select currency - Choose your preferred currency for calculations
- Click Calculate - Get your personalized retirement projection
About This 401k Calculator
This comprehensive 401k calculator provides detailed projections for your retirement savings. It takes into account your current balance, ongoing contributions, employer matching, and expected investment returns to give you a realistic picture of your retirement funds.
Key Features:
- Calculates total retirement balance at your chosen retirement age
- Includes employer matching contributions
- Accounts for compound interest growth
- Visual chart showing growth over time
- Multiple currency support
- Mobile-responsive design
- Instant calculations without page reload
Formula Used
Our 401k calculator uses the compound interest formula to project your retirement savings:
Where:
- FV = Future Value (your total 401k balance at retirement)
- PV = Present Value (your current 401k balance)
- r = Annual interest rate (expected return rate)
- n = Number of years until retirement
- PMT = Annual payment (your contributions + employer match)
Employer Match Calculation:
Employer Match = Annual Salary × (Employer Match Percentage / 100)
Total Annual Contribution:
Total = Your Annual Contribution + Employer Match
Use Cases & Applications
Who Should Use This Calculator:
- Young professionals starting their careers and 401k contributions
- Mid-career workers wanting to optimize their retirement savings
- Pre-retirees checking if they're on track for retirement
- HR professionals helping employees understand 401k benefits
- Financial advisors demonstrating retirement planning concepts
Common Scenarios:
- Comparing different contribution amounts
- Understanding the impact of employer matching
- Planning for career changes affecting salary
- Evaluating early retirement possibilities
- Calculating catch-up contributions for those 50+
Calculation Examples
Example 1: Young Professional
- Current Age: 25
- Retirement Age: 65
- Current Balance: $5,000
- Annual Contribution: $6,000
- Annual Salary: $50,000
- Employer Match: 3%
- Expected Return: 7%
- Result: Approximately $1.2 million at retirement
Example 2: Mid-Career Professional
- Current Age: 40
- Retirement Age: 67
- Current Balance: $100,000
- Annual Contribution: $12,000
- Annual Salary: $80,000
- Employer Match: 4%
- Expected Return: 6%
- Result: Approximately $950,000 at retirement
Frequently Asked Questions (FAQ)
What is a 401k?
A 401k is an employer-sponsored retirement savings plan that allows employees to save and invest for retirement on a tax-deferred basis.
What is employer matching?
Employer matching is when your employer contributes money to your 401k based on how much you contribute. For example, if your employer offers a 3% match, they'll contribute 3% of your salary if you contribute at least that amount.
What's a good 401k contribution rate?
Financial experts typically recommend contributing at least enough to get your full employer match, then aim for 10-15% of your salary including the match.
What is the 401k contribution limit?
For 2024, the contribution limit is $23,000 for employees under 50, and $30,000 for those 50 and older (including catch-up contributions).
What's a realistic expected return rate?
Historically, the stock market has averaged about 10% annually, but many financial planners use 6-8% for conservative projections to account for inflation and market volatility.
Should I contribute to 401k or pay off debt?
Generally, contribute enough to get the full employer match first, then focus on high-interest debt. The employer match is free money you shouldn't leave on the table.
Can I access my 401k before retirement?
Yes, but there are usually penalties and taxes. You can typically withdraw after age 59½ without penalty, or earlier in certain hardship situations.
Calculation Steps
Here's how our calculator processes your 401k projection:
- Calculate years to retirement: Retirement Age - Current Age
- Determine employer match: Annual Salary × (Employer Match % ÷ 100)
- Calculate total annual contributions: Your Contribution + Employer Match
- Apply compound interest formula: Account for growth of current balance
- Calculate annuity value: Future value of annual contributions
- Sum all components: Current balance growth + contribution growth
- Format results: Display in selected currency with proper formatting