401(k) Retirement Calculator

Calculate your projected retirement savings with employer match, catch-up contributions, and compound interest. See exactly how your 401(k) can grow over time.

💰 Current 401(k) Balance

💵 Annual Salary

📊 Your Contribution (%) Percentage of salary you contribute

🎁 Employer Match Formula

📈 Expected Annual Return (%) Conservative: 6%, Moderate: 7-8%, Aggressive: 9-10%

📅 Years Until Retirement

🎂 Your Age (Optional) Age 50+ enables catch-up contributions

Understanding Your 401(k)

A 401(k) is a powerful retirement savings account offered by employers. It combines tax advantages, employer matching contributions, and compound interest to help you build wealth for retirement. Starting early and contributing consistently can turn modest savings into a million-dollar nest egg.

💼 What is a 401(k)?

A 401(k) is an employer-sponsored retirement account where you contribute pre-tax dollars from your paycheck. Your contributions reduce your taxable income today, and your investments grow tax-deferred until you withdraw in retirement (typically age 59½ or later).

2025 Limits: $23,500 base limit, $31,000 with catch-up (50-59 or 64+), $34,750 with super catch-up (60-63).

🎁 The Power of Employer Match

Employer matching is free money. If your employer matches 50% up to 6% of salary, that's an instant 50% return on your contribution—far better than any investment.

Example: Earn $75,000, contribute 6% ($4,500), employer adds $2,250. That's $6,750 total—you just earned a $2,250 bonus!

📈 Compound Interest is Your Secret Weapon

Compound interest means you earn returns on your returns. Over decades, this creates exponential growth that dwarfs your contributions.

Example: Invest $500/month for 30 years at 7% return = $566,000 total. You contributed $180,000, but earned $386,000 in growth—more than 2x your contributions!

🚀 Catch-Up Contributions (Age 50+)

Starting at age 50, you can contribute extra to accelerate retirement savings. This is especially valuable if you started saving late or want to maximize your nest egg.

2025 Catch-Up: Ages 50-59 or 64+ can add $7,500/year. Ages 60-63 get a super catch-up of $11,250/year to boost savings during peak earning years.

7 Tips to Maximize Your 401(k)

Start Early: Time is your greatest asset. Even small contributions in your 20s can grow to six figures by retirement thanks to compound interest.
Always Get the Full Match: Contribute at least enough to capture 100% of your employer match. Leaving match money on the table is like turning down a raise.
Increase Contributions Gradually: Bump your contribution by 1% each year, or whenever you get a raise. You won't miss the money, but your future self will thank you.
Choose Low-Fee Index Funds: High fees eat into returns over time. Target index funds with expense ratios under 0.20%. Over 30 years, 1% in fees can cost you hundreds of thousands.
Never Cash Out When Changing Jobs: Roll your old 401(k) into your new employer's plan or an IRA. Cashing out triggers taxes and penalties, and you lose decades of potential growth.
Use Catch-Up Contributions at 50+: If you're 50 or older, max out catch-up contributions. Ages 60-63 get an even bigger super catch-up ($11,250 in 2025).
Rebalance Annually: Review your investments once a year. As you near retirement, gradually shift from stocks to bonds to reduce risk and protect your savings.

Frequently Asked Questions

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

At minimum, contribute enough to get your full employer match—it's free money. For 2025, you can contribute up to $23,500 ($31,000 if age 50-59 or 64+, $34,750 if age 60-63). Financial experts often recommend saving 10-15% of your income for retirement. Start with the match, then increase 1% per year until you hit 15%.

What is a good employer 401(k) match?

The most common match is 50% of your contributions up to 6% of your salary (effectively 3% of salary). A 100% match up to 3-6% is considered excellent. Some generous employers offer dollar-for-dollar matching up to 5-6%. Any employer match is valuable—always contribute enough to get the full match, or you're leaving free money on the table.

What is a realistic rate of return for a 401(k)?

Historically, the S&P 500 has averaged about 10% annual returns over the long term, but a conservative estimate for retirement planning is 6-8% to account for inflation, fees, and market volatility. Your actual returns depend on your investment choices (stocks vs bonds), fees, and how long you invest. A diversified portfolio of low-cost index funds typically averages 7-9% over 30+ years.

What are catch-up contributions for 401(k)?

If you're 50 or older, you can contribute extra to your 401(k) beyond the standard limit. For 2025: ages 50-59 or 64+ can add $7,500 (total $31,000), ages 60-63 can add $11,250 "super catch-up" (total $34,750). This helps you accelerate retirement savings if you started late or want to maximize your nest egg during peak earning years.

How much will my 401(k) be worth when I retire?

Your final 401(k) balance depends on: current balance, contribution amount, employer match, rate of return, and years until retirement. Use this calculator above to project your specific scenario. With consistent contributions and employer match, even modest savings can grow to $500k-$1M+ over 30-40 years. For example: contributing $500/month with a 3% employer match for 35 years at 7% return could yield over $800,000.

Should I max out my 401(k) or Roth IRA first?

Priority order: 1) Contribute to 401(k) up to employer match (free money), 2) Max out Roth IRA if eligible ($7,000 in 2025), 3) Return to 401(k) and contribute more, 4) Max out 401(k) completely ($23,500+). This strategy maximizes free money, provides tax diversification (pre-tax 401k + tax-free Roth), and builds retirement savings efficiently.

What happens to my 401(k) if I change jobs?

You have several options: 1) Roll over to your new employer's 401(k) (keeps everything in one place), 2) Roll over to an IRA (more investment choices), 3) Leave it with your old employer if balance > $5,000 (allowed but not ideal), or 4) Cash out (not recommended—you'll pay income tax + 10% penalty if under 59½). Rolling over preserves tax advantages and keeps your retirement savings growing tax-deferred.

401(k) vs Other Retirement Accounts

Feature	401(k)	Traditional IRA	Roth IRA	Taxable Account
2025 Contribution Limit	$23,500 ($31,000 age 50-59/64+, $34,750 age 60-63)	$7,000 ($8,000 age 50+)	$7,000 ($8,000 age 50+)	Unlimited
Employer Match	✅ Yes (free money!)	❌ No	❌ No	❌ No
Tax Treatment	Pre-tax contributions, taxed at withdrawal	Pre-tax contributions, taxed at withdrawal	After-tax contributions, tax-free withdrawals	After-tax, capital gains tax on earnings
Withdrawal Age	59½ (penalty before)	59½ (penalty before)	59½ for earnings (contributions anytime)	Anytime (no penalty)
Early Withdrawal Penalty	10% + income tax	10% + income tax	10% + tax on earnings only	None (just capital gains tax)
Best For	Maximizing savings with employer match	Self-employed or no 401(k) access	Tax-free retirement income, young savers	Flexibility, short-term goals

Recommendation: Contribute to 401(k) up to employer match, then max Roth IRA if eligible, then return to 401(k). This maximizes free money and provides tax diversification.

401(k) Retirement Calculator

401(k) Growth Over Time

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