Our 401(k) Retirement Calculator helps you estimate your retirement savings based on your annual salary, monthly contributions, expected salary increases, and employer match. Just enter your details to see your estimated 401(k) balance at retirement.

401(k) Retirement Calculator


How the 401(k) Retirement Calculator Works

This calculator helps you estimate how much you could have in your 401(k) retirement savings by the time you retire. It takes into account your current salary, contribution percentage, expected annual salary increase, current age, desired retirement age, expected rate of return on investments, current 401(k) balance, and employer match details. If you enter these values, you will see a projection of your retirement savings.

Detailed Explanation of Each Field

  • Your Annual Salary ($): This is your current yearly income before taxes. Enter the total amount you earn in one year from your job.
  • Your Monthly Contribution (%): This represents the percentage of your salary that you contribute to your 401(k) plan each month. For instance, if you contribute 8% of your salary, enter 8.
  • Annual Salary Increase (%): This is the rate at which you expect your salary to grow each year. If you anticipate a 3% raise annually, enter 3. If you don't expect any salary increases, enter 0.
  • Your Current Age: Enter your current age in years. This helps to calculate the number of years you have until retirement.
  • Desired Retirement Age: This is the age at which you plan to stop working and retire. The calculator uses this to determine the total number of years you have to save.
  • Expected Rate of Return (%): This is the annual rate at which you expect your investments to grow. A common estimate for stock market returns is around 6-8%, but this can vary. Enter the percentage you expect.
  • Current 401(k) Balance ($): If you already have some money saved in your 401(k), enter the total amount here. If you are just starting, enter 0.
  • Employer Match (%): Many employers match a portion of your 401(k) contributions. Enter the percentage of your contributions that your employer matches. For example, if your employer matches 50% of your contributions, enter 50.
  • Employer Match Salary Cap (%): This is the maximum percentage of your salary that your employer will match. For example, if your employer matches contributions up to 7% of your salary, enter 7.

Step-by-Step Guide to Use the Calculator

  1. Enter Your Annual Salary: Input your total pre-tax yearly earnings.
  2. Input Your Monthly Contribution Percentage: Specify the percentage of your salary that goes into your 401(k) each month.
  3. Enter Expected Annual Salary Increase: If you expect your salary to increase every year, enter the percentage. Otherwise, enter 0.
  4. Provide Your Current Age: This helps determine how many years you have left until retirement.
  5. Set Your Desired Retirement Age: The age at which you wish to retire.
  6. Expected Rate of Return: Enter the annual growth rate you expect from your 401(k) investments.
  7. Current 401(k) Balance: If you already have money saved in your 401(k), enter the amount here.
  8. Employer Match Percentage: Enter the percentage your employer contributes to your 401(k).
  9. Employer Match Salary Cap: The maximum salary percentage your employer will match.

Calculate Your Results

Once you have entered all the information, click the "Calculate" button. The calculator will estimate your retirement savings based on the inputs provided. The results will show you the total amount you could have in your 401(k) by the time you retire.

Resetting the Form

If you want to clear all the inputs and start over, click the "Clear" button. This will reset the form to its default values.

Related calculator: Retirement Calculator

How long to save $1 million in 401k?

The time it takes to save $1 million in a 401(k) depends on many factors including your current balance, annual contributions, employer match, rate of return, and any salary increases.

Here's a simplified example to to give you a clear picture below:

Example Calculation

Assumptions:

  • Current Balance: $0
  • Annual Salary: $50,000
  • Contribution Rate: 10% of salary
  • Employer Match: 50% of contributions, up to 6% of salary
  • Annual Salary Increase: 3%
  • Annual Rate of Return: 7%
  • Starting Age: 30

Using these assumptions, we can estimate the time to reach $1 million.

Calculation Steps

  1. Annual Contribution:
    • Employee contribution: $50,000 * 10% = $5,000
    • Employer match (up to 6%): $50,000 * 6% * 50% = $1,500
    • Total annual contribution: $5,000 + $1,500 = $6,500
  2. Annual Increase in Contributions:
    • Contributions increase with salary increases.
  3. Growth Calculation:
    • Contributions are invested and grow at an annual rate of 7%.

Estimation

Let's use a financial calculator or an Excel formula to estimate the time required. The formula to calculate the future value of an annuity (regular contributions) compounded annually is:

FV=P×((1+r)n−1r)FV = P \times \left( \frac{(1 + r)^n - 1}{r} \right)FV=P×(r(1+r)n−1​)

Where:

  • PPP is the annual contribution
  • rrr is the annual rate of return
  • nnn is the number of years

We'll adjust the formula to account for annual increases in salary and contributions.

Simplified Estimate

Using an online financial calculator or retirement planning tool with the above assumptions, you can estimate that it would take roughly 30 to 35 years to reach $1 million in your 401(k), assuming consistent contributions, salary growth, and investment returns.

To get a precise estimate tailored to your situation, use the 401(k) calculator provided above with your personal data and assumptions.