401(k) Calculator

Use MoneyGeek's free 401(k) calculator to estimate your retirement balance. Plug in your monthly contribution amount, employer match and desired age of retirement to see how your money could compound over time.

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401(k) Calculator

NP
By Nathan Paulus
Edited by Victoria Copans

Updated: December 2, 2024

Advertising & Editorial Disclosure

How to Use MoneyGeek’s 401(k) Calculator

To use our 401(k) calculator, enter key details about your retirement savings plan. Input your current age, annual income and any existing balance in your 401(k). Then, add information about your monthly contributions, your employer’s match percentage and any limits on the employer match. Finally, specify your expected retirement age, your estimated rate of return and how much you anticipate your income will grow annually.

As you adjust these numbers, the calculator instantly updates to show how your 401(k) balance could grow by the time you retire. It provides a detailed breakdown of your total contributions, employer matches and investment returns, helping you visualize the impact of each factor. This calculator makes it easy to experiment with different scenarios and fine-tune your savings strategy for retirement.

  1. 1
    Enter Your Current Age

    The earlier you begin saving, the more time your 401(k) contributions have to grow through compound interest. Even small contributions made in your 20s or 30s can accumulate significantly over the decades. If you’re starting later, try increasing your monthly contributions or extending your retirement age to boost your savings.

  2. 2
    Add Your Annual Income

    When calculating contributions, your income plays an important role in determining how much you can allocate toward your 401(k). For those with fluctuating earnings, setting a percentage of your income rather than a fixed dollar amount can help you stay consistent.

  3. 3
    Enter Your Starting Balance

    If you’ve already begun saving in a 401(k), your starting balance gives the calculator a baseline to build upon. This existing amount, combined with your future contributions and investment returns, can greatly influence your retirement savings. Even a modest starting balance can grow remarkably when paired with consistent contributions and smart investment strategies.

  4. 4
    Set Your Monthly Contributions

    How much you contribute each month directly impacts the growth of your 401(k). Regular, consistent contributions not only add to your total balance but also allow your money to compound over time. If possible, aim to contribute enough to take full advantage of your employer’s match, as this is essentially free money added to your account.

  5. 5
    Enter Employer Match Percentage

    The percentage your employer matches on your contributions can be a powerful boost to your retirement savings. For example, if your employer matches 50% of your contributions up to a certain percentage of your salary, you’re effectively earning a 50% return on that portion of your contributions right away. Take the time to review your company’s matching policy and contribute enough to maximize this benefit.

  6. 6
    Specify Employer Match Limit

    Employers often set a cap on the amount they will match, which means there’s a maximum benefit you can receive from this feature. Understanding this limit helps you decide how much to contribute without leaving any free money on the table. If your employer matches up to 5% of your salary, contributing at least that amount enables you to make the most of their match.

  7. 7
    Set Your Retirement Age

    The age at which you plan to retire is critical for calculating your total savings. A later retirement gives your investments more time to grow and can reduce the number of years you’ll need to rely on your savings. For those retiring earlier, higher contributions or more aggressive investment strategies may be necessary to build a sufficient balance.

  8. 8
    Add Your Estimated Rate of Return

    The rate of return represents how much your investments are expected to grow annually. A higher rate of return can significantly increase your savings, but it’s important to use realistic estimates based on your investment portfolio. Conservative estimates provide a clearer picture of what you can rely on, while more optimistic returns can highlight the potential benefits of strategic investment choices.

  9. 9
    Estimate Annual Income Growth 

    Annual income growth projects how your contributions may change over time. As your salary rises, maintaining or gradually increasing the same percentage of contributions can lead to a higher overall balance. This can accelerate your savings and reduce your financial burden in later years.

How to Read the Results

The results display your estimated 401(k) balance at retirement, divided into three components: your personal contributions, employer matches and investment returns. This breakdown shows how each element contributes to your overall savings and helps you identify opportunities to improve your retirement plan, such as increasing contributions or maximizing employer matches.

The accompanying graph illustrates how your savings grow over time and maps your contributions and returns year by year. It’s an easy way to see the compounding effect of regular contributions and how adjustments — like saving more or starting earlier — can have a meaningful impact over the long term.

Our calculator also estimates the monthly income your balance could generate in retirement. This figure helps you determine whether your current savings strategy aligns with your future financial needs. Additionally, the results include insights into the potential tax implications of withdrawals, offering clarity on how taxes might affect your income and overall balance.

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SAMPLE CALCULATION

Let’s say a 30-year-old earning $60,000 annually begins with a starting 401(k) balance of $10,000. They contribute 5% of their salary monthly, and their employer matches 50% of contributions up to 6% of income. With plans to retire at 65, they project an annual income growth of 2% and an average investment return of 7%.

Based on these inputs, our calculator estimates a total 401(k) balance of almost $1.3 million by retirement. This amount includes $159,983 in personal contributions, $59,993 from employer matches and over $1 million in investment growth.

This balance could translate to more than $4,000 in monthly retirement income, depending on withdrawal rates and taxes. Adjusting factors like contribution rates or retirement age in the calculator shows how small changes can make a big difference in reaching financial goals.

401(k) and Retirement Planning

More than a savings account, a 401(k) is an integral part of retirement planning that combines tax advantages, employer contributions and the power of compounding to help you build a secure financial future.

To significantly impact your retirement balance, take full advantage of employer matching, understand how taxes affect your savings and be mindful of withdrawal rules. Additionally, combine your 401(k) with other options like IRAs or Roth 401(k)s to provide flexibility and diversify your savings strategy.

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    Employer Matching Explained

    Employer matching is a benefit many companies offer. In this arrangement, your employer contributes additional funds to your 401(k) based on a percentage of what you contribute, up to a certain limit. For example, if your employer matches 50% of your contributions up to 6% of your salary, contributing at least 6% guarantees you receive the maximum match available.

    This extra funding acts as an incentive to save more and can substantially increase your total balance, especially when paired with compounding. Review your employer’s matching policy to understand how to make the most of this valuable benefit.

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    Tax Benefits of 401(k) Contributions

    A traditional 401(k) allows you to contribute pre-tax income, which lowers your taxable income in the year of contribution. The money grows tax-deferred, meaning you won’t pay taxes on earnings until you begin withdrawals in retirement. While withdrawals are taxed as ordinary income, this structure often lets you pay less tax overall if your income is lower in retirement.

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    Early Withdrawal Penalties and Exceptions

    Withdrawing funds from a 401(k) before age 60 usually triggers a 10% early withdrawal penalty, in addition to regular income tax. However, exceptions exist for specific circumstances, such as severe financial hardships, medical expenses exceeding 7.5% of your adjusted gross income or separation from employment after age 55 (commonly known as the Rule of 55). Unlike IRAs, 401(k)s do not allow penalty-free withdrawals for first-time home purchases.

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    Other Retirement Savings Options

    Adding accounts like IRAs or Roth 401(k)s to your retirement plan offers additional flexibility and tax advantages. IRAs often provide broader investment options, such as individual stocks and bonds, while Roth 401(k)s allow after-tax contributions with tax-free withdrawals in retirement. These options complement a traditional 401(k), giving you more ways to grow and manage your savings.

401(k) Calculator FAQ

Making the most of a 401(k) starts with knowing how it operates and how much you should contribute. Here are answers to commonly asked questions about this retirement account.

How is a 401(k) calculated?

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

How do you calculate taxes on 401(k) withdrawal?

Is putting $1,000 a month in a 401(k) good?

Is having $500,000 in a 401(k) enough to retire?

Is having $1,000,000 in a 401(k) enough to retire?

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About Nathan Paulus

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Nathan Paulus is the Head of Content Marketing at MoneyGeek, with nearly 10 years of experience researching and creating content related to personal finance and financial literacy.

Paulus has a bachelor's degree in English from the University of St. Thomas, Houston. He enjoys helping people from all walks of life build stronger financial foundations.

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