401K Calculator

This 401(k) calculator from Calculator Bank helps you determine how much you can accumulate in your 401(k) by calculating contributions, employer matches, interest, and time.

Understanding the 401(k) Calculator.

This 401(k) calculator helps you visualize your retirement savings growth over time and estimate how much you’ll have accrued by retirement age.

Below is a detailed explanation of each input field for this 401(k) calculator and how it affects your 401(k) projections.

Current Age

Your current age is the starting point for your 401(k) investment timeline. This value determines the number of years your investments will have to grow through compounding before retirement.

The power of compounding is most evident when you start early—even small contributions in your 20s and 30s can grow substantially by retirement age due to the extended timeframe. Starting earlier also provides more flexibility to adjust your strategy as life circumstances change.

Retirement Age

The age at which you plan to retire influences your 401(k) calculations. A later retirement age allows for more years of contributions and growth, potentially leading to a substantially larger nest egg. While the traditional retirement age has been 65, many people now work longer due to increased longevity, financial needs, or career satisfaction. Each additional year of working and contributing can dramatically increase your retirement savings while also reducing the number of years your savings need to support you.

Annual Salary

Your current annual income forms the basis for calculating your 401(k) contributions since these are typically expressed as a percentage of your salary. The calculator uses this figure to determine both your contributions and your employer’s matching contributions.

Higher salaries naturally allow for larger contributions in absolute dollar terms, even when using the same percentage contribution rate. Your annual salary input should reflect your gross income before taxes and other deductions.

Current 401(k) Balance

This figure shows how much money is currently in your 401(k) account. By including your total savings to date, entering your present amount gives a more accurate prediction if you have been making contributions to a 401(k) for a while. For people who are just beginning their 401(k) adventure, this value may be zero. You should include any rolled-over amounts from prior companies’ 401(k) plans to get a complete picture of your retirement assets.

Your Contribution Rate

The amount of your annual salary that you contribute to your 401(k) is determined by this percentage. Many financial advisors recommend contributing at least enough to capture your full employer match (often 6%), with a target of 10-15% of your income for retirement savings. The IRS sets annual contribution limits ($23,000 for 2024, plus catch-up contributions for those over 50), which the calculator takes into account.

Employer Match Rate

The employer match rate represents the percentage of your contributions that your employer will match. Common arrangements include dollar-for-dollar matching (100%) or fifty cents on the dollar (50%).

This is essentially free money that provides an immediate return on your investment—a 50% match is equivalent to an immediate 50% return on the matched portion of your contributions. When you understand your employer’s matching formula, it helps you optimize your contributions to capture the maximum possible match.

Employer Match Limit

This value indicates the maximum percentage of your salary that your employer will match. Many employers cap their matching contributions at a certain percentage of your salary (commonly 3-6%). An employer might, for instance, match 50% of your contributions up to 6% of your pay. This means if you contribute 6% of your salary, your employer adds another 3% (50% of 6%). Understanding this limit helps you contribute at least enough to receive the full employer match available to you.

Catch-Up Contributions

The calculator includes an option to enable catch-up contributions for those aged 50 and older. These are additional contributions beyond the standard annual limits set by the IRS ($7,500 extra for 2024), designed to help older workers accelerate their retirement savings as they approach retirement age. Enabling this option in your calculations may boost your projected retirement savings if you plan to make these additional contributions during your later working years.

Expected Annual Return

Your expected average annual investment return over time is represented by this percentage. Your exact returns will be determined by your investment allocation, market conditions, and time horizon, even though historical stock market returns have averaged between 7% and 10% before inflation.

While more conservative tactics (higher bond allocations) usually offer more stability but lower long-term returns, more adventurous investment strategies (higher stock allocations) typically offer larger prospective returns with greater volatility. One of the biggest effects on your long-term forecasts is this assumption.

Annual Salary Increase

This rate represents your expected yearly income growth due to raises, promotions, and career advancement. While the average annual raise in the United States typically ranges from 2-4%, your personal trajectory may differ based on your industry, position, and career stage.

Early-career professionals often experience higher percentage increases, while those nearing retirement might see more modest growth. A realistic salary growth assumption helps create more accurate projections of both your contributions and your employer’s matching amounts over time.

Expected Inflation Rate

The slow decline in purchasing power over time brought on by growing prices is explained by the inflation rate. When converting your results into “today’s dollars,” the calculator helps you determine the true value of your future savings.

Although historical averages have been marginally higher, the Federal Reserve normally aims for an annual inflation rate of 2%. Because a dollar in 30 years will buy much less than a dollar now, this adjustment is essential for accurate planning for retirement.