401k Calculator
The 401(k) Calculator helps you estimate how much your 401(k) retirement account will be worth when you retire. A 401(k) is an employer-sponsored retirement savings plan that allows you to contribute pre-tax dollars, with many employers matching a percentage of your contributions. This calculator factors in your current balance, annual contributions, employer match, expected annual return, and years until retirement to project your future nest egg. Understanding your 401(k) growth potential is essential for retirement planning, as it shows whether you are on track to meet your retirement income needs or if you should increase your contributions.
Formula
Future Value = Current Balance × (1 + r)^n + Annual Contribution × [((1 + r)^n − 1) ÷ r] r = annual return rate n = years until retirement
Example
If you have $50,000 in your 401(k), contribute $10,000 per year, your employer matches $5,000, and you expect a 7% annual return over 25 years: Future Value = $50,000 × (1.07)^25 + $15,000 × [((1.07)^25 − 1) ÷ 0.07] Future Value = $50,000 × 5.43 + $15,000 × 63.25 Future Value = $271,500 + $948,750 = $1,220,250
How to Use
- Enter your current 401(k) balance
- Input your annual contribution amount
- Add your employer's matching contribution (if any)
- Set your expected annual return rate (7-10% is typical for stock-heavy portfolios)
- Enter the number of years until you plan to retire
Frequently Asked Questions
What is a 401(k) employer match?
An employer match is a contribution your employer makes to your 401(k) based on your own contributions. A common match is 50% of your contributions up to 6% of your salary. This is essentially free money — always contribute at least enough to get the full match.
What is the 401(k) contribution limit for 2026?
The IRS sets annual contribution limits. For 2026, the employee contribution limit is $23,000, with an additional $7,500 catch-up contribution for those aged 50 and older.
Should I use traditional or Roth 401(k)?
Traditional 401(k) contributions are pre-tax (lower your taxable income now, taxed on withdrawal in retirement). Roth 401(k) contributions are after-tax (no tax deduction now, but tax-free withdrawals in retirement). Choose Roth if you expect to be in a higher tax bracket in retirement.
When can I withdraw from my 401(k) without penalty?
You can withdraw without the 10% early withdrawal penalty after age 59½. Required Minimum Distributions (RMDs) must begin at age 73 (or 75 if born after 1960).
What happens to my 401(k) if I change jobs?
You can leave it with your former employer, roll it over to your new employer's plan, or roll it into an IRA. A rollover preserves the tax-advantaged status. Avoid cashing out, as you will face taxes and penalties.