401(k) Retirement Calculator
Project how large your 401(k) balance will be at retirement given your current savings, salary, contributions, employer match, and expected investment return. Use it when setting retirement savings goals or evaluating the impact of starting earlier.
About this calculator
Your projected 401(k) balance at retirement combines two growing streams. The first is your existing balance compounding over time: futureBalance = currentBalance × (1 + r)^t, where r is the annual return rate and t is the years until retirement. The second is the future value of an annuity representing ongoing annual contributions (your percentage plus employer match): FV = annualContribution × [(1 + r)^t − 1] / r, where annualContribution = salary × (contribution% + employerMatch%) / 100. The full formula is: total = currentBalance × (1+r)^t + [salary × (contribution + employerMatch) / 100] × [(1+r)^t − 1] / r. This assumes contributions are made once per year and the return rate stays constant — real returns fluctuate, so the result is an estimate. Starting early is powerful because (1+r)^t grows exponentially with time.
How to use
Current age = 35, retirement age = 65 (t = 30 years), current balance = $50,000, salary = $70,000, your contribution = 6%, employer match = 3%, return rate = 7%. Annual contribution = $70,000 × (6 + 3)% = $6,300. Growth of existing balance: $50,000 × (1.07)^30 = $50,000 × 7.6123 = $380,615. Future value of contributions: $6,300 × [(1.07)^30 − 1] / 0.07 = $6,300 × 94.461 ≈ $595,102. Total projected balance ≈ $380,615 + $595,102 = $975,717.
Frequently asked questions
How much should I have saved in my 401(k) by age 40?
A common rule of thumb from financial planners is to have roughly three times your annual salary saved in retirement accounts by age 40. So if you earn $60,000 a year, a target of $180,000 by 40 is a reasonable benchmark. However, this is a guideline, not a hard rule — someone who starts saving later, earns a higher income, or plans to retire early will need to adjust. The most important factor is consistent contribution growth over time, as compounding rewards early savers disproportionately.
What annual return rate should I use for my 401(k) retirement projection?
The U.S. stock market has historically returned roughly 7% annually after inflation over long periods, and about 10% in nominal terms. Most financial planners recommend using 6–8% as a conservative-to-moderate nominal return assumption for a diversified 401(k) portfolio of stocks and bonds. More conservative allocations (heavier in bonds) might use 4–5%, while all-equity assumptions might use 8–9%. Remember that projections are estimates: actual returns vary year to year and sequence-of-returns risk near retirement can significantly impact your final balance.
How does starting 401(k) contributions 10 years earlier affect my retirement balance?
Starting earlier has a dramatic effect because of compound growth. An investor who starts at 25 versus 35 with identical contributions and a 7% return will accumulate roughly twice the balance by age 65, even though they contributed only 10 additional years' worth. This is because the earlier contributions have decades more to compound. For example, $5,000 invested at 25 grows to about $74,000 by 65, while the same $5,000 invested at 35 grows to only $38,000 — a nearly 2:1 difference from a single contribution. This illustrates why maximizing contributions early, even in small amounts, is the most powerful retirement savings strategy available.