401k Calculator
Project your retirement wealth. See how your contributions, employer matches, and market returns build your nest egg over time.
Example: 50% match
Example: up to 6% of salary
Example 401k Calculation
See how a $15,000 start at age 30 grows with a $70,000 salary and a 6% contribution.
Step 1: Employer Match
If the employer matches 50% up to 6% of your salary:
Your Contrib: 6% of $70k = $4,200/yr
Employer Match: 50% of your $4,200 = $2,100/yr
Total Annual Savings: $6,300
Step 2: Compounding Results
Over 35 years at a 7% return:
Your $15k start grows to ~$160k.
Your $6,300/yr savings grows to ~$880k.
Total Balance: ~$1,040,000
Frequently Asked Questions
What is a 401k?
A 401k is a tax-advantaged, employer-sponsored retirement account. It allows employees to contribute a portion of their pre-tax or post-tax (Roth) wages to individual accounts where it grows tax-deferred.
Why is matching important?
Employer matching is essentially a "guaranteed 100% return" (or whatever the match rate is) on the first portion of your contribution. It is "free money" that significantly accelerates your wealth building.
What are the 2025 limits?
For 2025, the individual contribution limit is $23,500 for those under 50. If you are 50 or older, you can make a "catch-up" contribution of an additional $7,500, for a total of $31,000.
Traditional vs. Roth 401k?
Traditional 401k contributions are pre-tax, reducing your tax bill today but taxed when you withdraw. Roth 401k contributions are after-tax, but your withdrawals in retirement are 100% tax-free.
What is the 4% Rule?
The 4% rule is a guideline for how much you can withdraw from your portfolio each year in retirement without running out of money for at least 30 years. It helps estimate how much annual income your nest egg provides.
What happens if I switch jobs?
You generally have four options: leave it in your old employer's plan, roll it over into your new employer's 401k, roll it into an IRA (usually best for control), or cash it out (not recommended due to taxes and penalties).
Disclaimer: This calculator provides estimates for informational purposes only. Actual financial outcomes depend on market performance, tax treatment, and specific employer plan terms. Consult a qualified professional before making significant retirement decisions.