401(k) Calculator

This powerful 401(k) calculator helps you forecast your retirement savings. See how your contributions, employer match, and investment growth combine to build your nest egg over time.

Enter Your Details

Forecast your retirement balance.

Estimated 401(k) Balance

$0

Total Your Contributions: $0
Total Employer Match: $0
Total Growth: $0

What is a 401(k) Calculator?

A 401(k) calculator is a financial planning tool designed to project the future value of your 401(k) retirement account. It helps you visualize your progress towards your retirement goals by factoring in your current balance, your ongoing contributions, any employer matching funds, and the expected annual growth from your investments. Using a 401k growth forecast like this can make an abstract goal—like retirement—feel much more concrete and achievable.

How to Calculate Your 401(k) Growth

Our calculator combines two separate compound interest formulas to give you a complete picture of your nest egg:

  1. The future value of your **current balance** (as a single lump sum).
  2. The future value of your **monthly contributions** (as a repeating payment, or annuity).

The total estimated balance is the sum of these two calculations.

Total Balance = (Part 1) + (Part 2)

Part 1 (Current Balance): FVPV = PV × (1 + r)n

Part 2 (Contributions): FVP = P × [ ((1 + r)n - 1) / r ]

  • PV = Current Balance (the money already in your account)
  • P = Total Monthly Contribution (Your Contribution + Employer Match)
  • r = Monthly Interest Rate (your 'Expected Annual Growth' rate divided by 12, then by 100)
  • n = Number of Months (your 'Years Until Retirement' multiplied by 12)

Solved Example

Let's imagine you are starting your retirement planning with the following numbers:

  • Current Balance (PV): $50,000
  • Your Monthly Contribution: $400
  • Employer Match: $200 (making P = $600)
  • Expected Annual Growth: 7% (making r = 0.07 / 12 = 0.005833)
  • Years to Retire: 25 (making n = 25 × 12 = 300 months)

Calculation:

Part 1 (Current Balance):
$50,000 × (1 + 0.005833)300 = $50,000 × 5.726 = $286,300

Part 2 (Contributions):
$600 × [ ((1 + 0.005833)300 - 1) / 0.005833 ] = $600 × [ 4.726 / 0.005833 ] = $486,060

Total Estimated Balance = $286,300 + $486,060 = $772,360

Practical Applications & Planning

A retirement savings calculator is more than just a number generator. It's a key part of your financial decision-making.

  • See the Power of "Free Money": Use the 'Employer's Monthly Match' field to see the dramatic impact it has on your final balance. Not contributing enough to get the full match is like turning down a raise.
  • The Cost of Waiting: Run a calculation for 30 years. Now, run it again for 20 years. That 10-year difference, especially at the beginning, can be worth hundreds of thousands of dollars thanks to compounding.
  • Set Realistic Goals: Are you on track? If your estimated balance isn't enough, you can see exactly how much increasing your monthly contribution will help.

Common 401(k) Reference Values

When filling out the calculator, here are some common values to consider:

  • Contribution Limits (2024/2025): The IRS limit for employee contributions is typically around $23,000 per year if you are under 50. If you are 50 or over, you can make additional "catch-up" contributions (e.g., an extra $7,500).
  • Employer Match: This varies, but a common policy is "50% match on the first 6% of your salary" or "100% match on the first 3%." Our calculator asks for the final dollar amount, so you'll need to calculate that based on your salary.
  • Annual Growth: This is an estimate. A portfolio heavily invested in stocks (like an S&P 500 index fund) has historically averaged 7-10% annually over long periods. A more balanced (60/40) portfolio might be estimated at 5-7%. These returns are never guaranteed.

Frequently Asked Questions (FAQ)

1. What is an employer 401(k) match?

An employer match is free money your employer contributes to your 401(k) as an incentive. A common policy is "50% match up to 6% of your salary." This calculator helps you see how significant that match is to your final nest egg.

2. How much should I contribute to my 401(k)?

Most financial experts recommend contributing at least enough to get the full employer match. After that, many suggest aiming for 10-15% of your pre-tax income. The 2024 IRS limit for employee contributions is $23,000 (with an additional $7,500 "catch-up" for those 50 and over).

3. Is the 'Expected Annual Growth' guaranteed?

No. The growth of your 401(k) is based on the performance of your chosen investments (like stocks and bonds) and is subject to market risk. The 7-10% range is often used as a long-term historical average for stock-heavy portfolios, but it is not a guaranteed return.

4. What is a 'vesting schedule'?

A vesting schedule is the timeline an employee must work to own their employer's matching contributions. Your own contributions are always 100% yours. If you leave before you are fully 'vested', you may have to forfeit some or all of the employer match money.

Planning for retirement is a marathon, not a sprint. Use this 401k growth forecast to set your goals, and explore our full suite of retirement and investment calculators to build a comprehensive financial plan.

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