Our 401k Retirement Calculator allows for precise projections of your 401(k) balance, factoring in critical elements like age, salary, personal contributions, employer matching, and anticipated returns. The graphical representation of your fund’s growth accounts for both your contributions and employer matches, which can range from 50% to 100%. Use this calculator to take advantage of tax-deferred contributions and maximize your retirement savings.

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401k Retirement Calculator

Annual Salary

Monthly contribution

Annual Salary Rise

Current Age

Current Age*

Retirement Age

Retirement Age*

Expected Rate of Return

Current 401k Balance

Employer Match

Salary Limit for Employer Match

Estimated Balance at Retirement$718,831.77

Total Employee Contribution$140,000

Total Employer Contribution$42,000

Payment Schedule

This table lists how much principal and interest are paid in each scheduled loan payment.

$40,000.00

$4,000.00

$1,200.00

$5,200.00

$40,000.00

$4,000.00

$1,200.00

$10,764.00

$40,000.00

$4,000.00

$1,200.00

$16,717.48

$40,000.00

$4,000.00

$1,200.00

$23,087.70

$40,000.00

$4,000.00

$1,200.00

$29,903.84

$40,000.00

$4,000.00

$1,200.00

$37,197.11

$40,000.00

$4,000.00

$1,200.00

$45,000.91

$40,000.00

$4,000.00

$1,200.00

$53,350.97

$40,000.00

$4,000.00

$1,200.00

$62,285.54

$40,000.00

$4,000.00

$1,200.00

$71,845.53

$40,000.00

$4,000.00

$1,200.00

$82,074.72

$40,000.00

$4,000.00

$1,200.00

$93,019.95

$40,000.00

$4,000.00

$1,200.00

$104,731.34

$40,000.00

$4,000.00

$1,200.00

$117,262.54

$40,000.00

$4,000.00

$1,200.00

$130,670.91

$40,000.00

$4,000.00

$1,200.00

$145,017.88

$40,000.00

$4,000.00

$1,200.00

$160,369.13

$40,000.00

$4,000.00

$1,200.00

$176,794.97

$40,000.00

$4,000.00

$1,200.00

$194,370.62

$40,000.00

$4,000.00

$1,200.00

$213,176.56

$40,000.00

$4,000.00

$1,200.00

$233,298.92

$40,000.00

$4,000.00

$1,200.00

$254,829.84

$40,000.00

$4,000.00

$1,200.00

$277,867.93

$40,000.00

$4,000.00

$1,200.00

$302,518.69

$40,000.00

$4,000.00

$1,200.00

$328,895.00

$40,000.00

$4,000.00

$1,200.00

$357,117.65

$40,000.00

$4,000.00

$1,200.00

$387,315.88

$40,000.00

$4,000.00

$1,200.00

$419,627.99

$40,000.00

$4,000.00

$1,200.00

$454,201.95

$40,000.00

$4,000.00

$1,200.00

$491,196.09

$40,000.00

$4,000.00

$1,200.00

$530,779.82

$40,000.00

$4,000.00

$1,200.00

$573,134.40

$40,000.00

$4,000.00

$1,200.00

$618,453.81

$40,000.00

$4,000.00

$1,200.00

$666,945.58

$40,000.00

$4,000.00

$1,200.00

$718,831.77

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Popular 401(k) Funds

FXAIX

Fidelity 500 Index Fund

Moderate Buy

$201.15

FNCMX

Fidelity NASDAQ Composite Index

Moderate Buy

$236.07

BPTRX

Baron Partners Fund

Moderate Buy

$150.72

FDSVX

Fidelity Growth Discovery Fund

Strong Buy

$70.15

SLMCX

Columbia Seligman Technology & Information Fund, Inc. Class A

Moderate Buy

$137.39

FSELX

Fidelity Select Semiconductors Portfolio

Strong Buy

$35.44

PARWX

Parnassus Endeavor Fund - Investor Shares

Moderate Buy

$61.01

PRGSX

T. Rowe Price Global Stock Fund

Moderate Buy

$70.16

Definitions

Percent to Contribute:

This percentage of your annual salary is contributed to your 401(k) plan each year. Most employers allow contributions of up to 100% of your salary.

Annual Salary:

Your yearly income before taxes and deductions from your employer. This figure is used to calculate your 401(k) contribution and employer match, so it should only include income from your employer.

Annual Contributions:

Based on your annual salary and the percentage you contribute, this is your total yearly contribution to your 401(k). Note that the annual maximum for 2023 is $22,500. For those aged 50 and above, an additional "catch-up" contribution of $7,500 is allowed. Employer contributions do not count toward this limit.

Highly Compensated Employees:

Those earning $150,000 or more in 2023 may face additional contribution limits based on their employer’s 401(k) participation. Current Age: Your present age.

Age of Retirement:

The age at which you plan to retire. This calculator assumes no contributions in the year of retirement.

Current 401(k) Balance:

The current amount in your 401(k) account.

Annual Rate of Return:

The expected yearly return rate for your 401(k), compounded annually. Returns depend on your investment choices and market conditions, with the S&P 500 historically returning about 10%. Remember, higher returns typically involve higher risks.

Annual Salary Increase:

The expected annual percentage increase in your salary, assumed to continue until retirement.

Employer Match:

Additional contributions from your employer, based on a percentage of your annual contributions. This often ranges from 0% to 100% of your contributions, subject to a maximum percentage of your salary.

Employer Maximum:

The highest percentage of your salary that your employer will match, regardless of your contribution amount. For instance, with a 50% match up to 6% of a $25,000 salary, your employer contributes $750, whether you contribute 6% or 10% of your salary.

More Information about 401(k)s

1. Understanding 401(k) Retirement Plans:

A 401(k) plan is a powerful tool in your retirement planning arsenal, offered by many employers as part of their benefits package. These plans enable direct contributions from your paycheck, making them a convenient and efficient way to save for your golden years. Primarily, there are two types of 401(k) plans:

Traditional 401(k): This prevalent version allows pre-tax contributions, with your investments and earnings growing tax-deferred. Taxes apply upon withdrawal during retirement.

Roth 401(k): Offered by about half of the employers with 401(k) plans, this option involves after-tax contributions. However, the significant benefit is that distributions, including investment earnings, are federally tax-free upon retirement.

2. Why Opt for a 401(k) Plan?

One of the most compelling reasons to invest in a 401(k) is employer matching. Most employers match a portion of your contributions, essentially providing free money towards your retirement savings. Commonly, this match ranges from 50% to 100% of your contributions, up to a specific salary percentage, often between 3% and 6%. Maximizing your contributions to leverage this match is a financially prudent move.

Besides the match, 401(k)s stand out for their high contribution limits, allowing substantial tax-advantaged savings. In 2023, the contribution limit is $22,500, with an additional catch-up contribution of $7,500 for those aged 50 and above.

3. Investment Choices within a 401(k):

Typically, 401(k) plans offer a curated selection of mutual funds. While this can provide access to lower-cost fund options, especially in large companies, it also limits your investment choices. Some offered funds might have higher expense ratios than available alternatives. Additionally, administrative fees on top of fund expenses can accumulate, impacting your overall returns. If your 401(k) plan is costly, consider contributing enough to earn your employer's match and then divert additional savings to an IRA for more investment flexibility.

4. Important Considerations and Rules:

Early Withdrawals: Generally, taking money out of your 401(k) before age 59½ incurs a 10% penalty plus income taxes. However, certain exceptions can apply.

Job Changes: If you change jobs, you can roll over your 401(k) into a new employer's plan or into an IRA, offering greater control and a broader range of investment options.

Required Minimum Distributions (RMDs): 401(k)s usually mandate RMDs starting at a specific age (73 as of 2024). Rolling a Roth 401(k) into a Roth IRA can help avoid these distributions.

Understanding these facets of 401(k) plans can significantly enhance your retirement planning, ensuring you make the most of these valuable savings vehicles.