Our comprehensive, free 401(k) calculator helps you estimate your retirement savings and plan for your financial future. Whether you're just starting your career or approaching retirement, this tool provides valuable insights into how your contributions today can grow over time, accounting for employer matches, investment returns, and inflation. No Signup Required.
This calculator is for illustrative purposes only and does not guarantee investment results.
Past performance is not indicative of future returns.
A 401(k) is a tax-advantaged retirement savings plan offered by employers that allows employees to save and invest a portion of their paycheck before taxes are taken out.
These contributions can grow tax-deferred until withdrawal during retirement, helping you build wealth over time.
Key benefits of 401(k) plans:
Understanding how to maximize your 401(k) benefits is crucial for building a secure retirement. Our calculator helps you visualize the long-term impact of your saving decisions.
The 401(k) plan was never actually designed to be America's primary retirement system!
It began as an obscure provision in the Revenue Act of 1978, named after its section in the tax code.
Originally intended as a way for executives to defer taxes on bonuses, it was financial consultant Ted Benna who realized in 1980 that the provision could be used to create a tax-advantaged savings plan for all employees. What started as a supplemental benefit has now grown to hold over $7 trillion in assets, becoming the cornerstone of retirement planning for millions of Americans despite its accidental origins!
The mathematical power behind 401(k) growth lies in the concept of compound interest combined with tax deferral.
When investment returns remain in the account untaxed, they create a compounding effect that accelerates dramatically over time. This tax-sheltered compounding creates what economists call a "time value premium" that can be quantified.
For example, a 25-year-old contributing $5,000 annually with a 7% return will have approximately 45% more at retirement than if the same investments were made in a taxable account (assuming a 24% tax bracket). This mathematical advantage explains why even small increases in contribution rates early in one's career can translate to six-figure differences in retirement balances! 🚀
Our 401(k) Calculator helps you estimate your retirement savings based on your contributions, employer match, and investment returns. It's perfect for individuals who want to plan their retirement strategy and understand how their savings will grow over time. You can adjust various parameters to see how different scenarios might affect your retirement readiness.
Enter your current age, retirement age, current 401(k) balance, annual contribution, employer match percentage, and expected rate of return. The calculator will project your retirement savings at your target retirement age. You can also adjust your contribution amount to see how increasing your savings rate impacts your long-term results.
Employer matching is when your employer contributes to your 401(k) based on your contributions. For example, if your employer offers a 50% match up to 6% of your salary, and you contribute 6% of your $50,000 salary ($3,000), your employer would add an additional $1,500 (50% of $3,000) to your account. This is essentially free money that can significantly boost your retirement savings over time.
While historical average stock market returns have been around 7-10% before inflation, it's generally recommended to use a more conservative estimate of 5-7% for long-term retirement planning. Adjust based on your investment strategy and risk tolerance. Remember that past performance doesn't guarantee future results, and diversification is key to managing investment risk.
Yes, your calculations are automatically saved to your browser's local storage. They will remain available when you return to the calculator, even after closing your browser or restarting your device. This convenient feature allows you to revisit and adjust your retirement planning scenarios without having to re-enter all your information.
Inflation reduces the purchasing power of your money over time. Our calculator allows you to input an expected inflation rate to show your projected savings in today's dollars, giving you a more realistic view of your future purchasing power. For example, with 3% annual inflation, $100,000 today would only have the purchasing power of about $55,000 in 20 years, making inflation consideration crucial for accurate retirement planning.
Yes, we take data security seriously. Your financial information is stored locally in your browser and never sent to our servers. This ensures complete privacy and security of your personal financial information. We use modern web technologies to provide this calculator without compromising your data privacy.
Maximizing your 401(k) contributions can be beneficial for many people, especially if your employer offers matching contributions. However, the right strategy depends on your overall financial situation, including debt, emergency savings, and other financial goals. Our calculator can help you see the impact of increasing your contributions to find the right balance for your circumstances.
It's advisable to review your retirement savings plan at least annually or whenever you experience significant life changes such as a new job, salary increase, marriage, or having children. Regular reviews help ensure your retirement strategy remains aligned with your changing financial situation and long-term goals.