401k Calculator
Calculate your 401k retirement savings growth with employer matching and compound interest.
401k Details
2024 limit: $23,000 ($30,500 if 50+)
Cap: max % of your contribution
Of your contribution
Projected Balance
At Retirement
$1,632,807
401k Growth Over Time
About This Calculator
401k Retirement Calculator
The 401k Calculator helps you project your retirement savings growth including your contributions, employer matching contributions, and investment returns. 401(k) plans are powerful retirement savings vehicles that offer tax advantages and employer matching.
This calculator accounts for your current 401k balance, annual contributions (up to IRS limits), employer matching contributions, and expected investment returns to show your projected retirement balance. See how employer matching and compound growth can significantly boost your retirement savings.
Formula & Calculation Method
401k Growth Formula:
Future Value = Current Balance × (1 + r)^n
+ Annual Contribution × [((1 + r)^n - 1) / r]
+ Annual Employer Match × [((1 + r)^n - 1) / r]
Where:
r = Annual return rate
n = Number of years
Annual Employer Match = min(Contribution × Match %, Contribution × Employer Match %)
This formula compounds returns annually on your current balance and all contributions. Each year's contribution and employer match are added at the end of the year (ordinary-annuity timing), which is exactly what the annuity factor [((1 + r)^n - 1) / r] above represents — so the closed-form formula and the year-by-year projection always produce the same balance. For the employer match, this calculator uses two inputs that are both applied to your contribution: Match % is the share of each contributed dollar your employer adds, and Employer Match % caps that match at a maximum percentage of your contribution. The annual match is the lesser of the two — min(Contribution × Match %, Contribution × Employer Match %) — so with a 50% match capped at 5%, a $20,000 contribution earns min($10,000, $1,000) = $1,000 per year.
How to Use This Calculator
- Enter Current Balance: Input your current 401k account balance.
- Enter Annual Contribution: Input how much you contribute per year (2024 limit: $23,000, $30,500 if 50+).
- Enter Employer Match: Input your employer's maximum match percentage of salary.
- Enter Match Percentage: Input what percentage of your contribution your employer matches (e.g., 50% for 50 cents per dollar).
- Enter Expected Return: Input your expected annual investment return (typically 6-8% for balanced portfolios).
- Enter Years: Input years until retirement or target date.
- View Results: See projected balance, total contributions, employer match, and interest earned.
Frequently Asked Questions
What is the 401k contribution limit?
For 2024, the contribution limit is $23,000 for employees under 50, and $30,500 for those 50 and older (includes catch-up contribution). Employer contributions don't count toward this limit but are subject to total limit of $69,000.
How does employer matching work?
Employers typically match a percentage of your contribution up to a certain limit. This calculator models the match with two inputs, both applied to your annual contribution: "Match %" is the share of each contributed dollar the employer adds, and "Employer Match %" caps that match at a maximum percentage of your contribution. The yearly employer match is the lesser of the two, i.e. min(Contribution × Match %, Contribution × Employer Match %). For example, a 50% match capped at 5% on a $20,000 contribution adds min($10,000, $1,000) = $1,000 per year.
Should I contribute enough to get the full employer match?
Yes! Employer matching is essentially free money. If you don't contribute enough to get the full match, you're leaving money on the table. It's typically the best return on investment you can get.
What is a realistic expected return for a 401k?
Historical stock market returns average 7-10% annually over long periods. A balanced 401k portfolio might expect 6-8%. Conservative portfolios might be 4-6%, while aggressive portfolios might target 8-10%. Past performance doesn't guarantee future results.
Expert Reviewed
This calculator was reviewed by NumCalculators Editorial Team, Multi-disciplinary Expert Team