401(k) retirement savings calculator
A traditional 401(k) can be one of your best tools for creating a secure retirement. It provides you with two important advantages. First, all contributions and earnings to your 401(k) are tax-deferred. You pay taxes on the money only when it’s withdrawn from the account. Second, many employers provide matching contributions to your 401(k) account, which experts say is like free money. The amount of the match will vary by employer, but often ranges from 50 to 100 percent of your contributions. The combined result is a retirement savings plan you cannot afford to pass up.
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Percent to contribute: This is the percentage of your annual salary you contribute to your 401(k) plan each year. Most employers permit employees to contribute up to 100 percent of their salary to a 401(k).
Annual salary: This is your annual salary from your employer before taxes and other benefit deductions. Since your contribution and company match are based on the salary paid to you by your employer, do not include any income you may receive from sources other than your employer.
Annual contributions: Your total contribution for one year is based on your annual salary times the percent you contribute. However, your annual contribution is also subject to certain maximum total contributions per year. The annual maximum for 2025 is $23,500. Those age 50 or older can make a "catch-up" contribution of up to an additional $7,500 into the 401(k) account. It is also important to note that employer contributions do not affect an employee's maximum annual contribution limit.
It is important to note that some employees are subject to another form of contribution limitations. Employees classified as "Highly Compensated" may be subject to contribution limits based on their employer's overall 401(k) participation. If you expect your salary to be $160,000 or more in 2025, you may need to contact your employer to see if these additional contribution limits apply to you.
Current age: Your current age.
Age of retirement: Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your 401(k). So if you retire at age 65, your last contribution occurs when you are actually 64.
Current 401(k) balance: The starting balance or current amount you have invested or saved in your 401(k).
Annual rate of return: The annual rate of return for your 401(k) account. This calculator assumes that your return is compounded annually and your deposits are made monthly. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500 (S&P 500) stock index has returned about 10 percent over the long term, but returns can be quite volatile over short time periods. Fixed-income investments such as bonds are typically less volatile, but generally offer lower returns compared to stocks.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time. This includes the potential loss of principal on your investment.
Annual salary increase: The annual percentage you expect your salary to increase. We assume that your salary will continue to increase at this rate until you retire.
Employer match: An employer match is in addition to your annual contributions. It is based on a percentage of your annual contributions. This typically ranges anywhere from 0 to 100 percent.
For example, let's assume the employer matches 50 percent of the employee's contributions up to 6 percent of their salary. The employee earns $100,000 per year and contributes 10 percent. The results would be:
- $10,000 from the employee
- $3,000 from the employer (which is 50 percent of $6,000, or 6 percent of the annual salary)
- Total: $13,000
Please read the definition for "Employer maximum" for a detailed description of maximum employer matching contributions. It is also important to note employer contributions do not affect the maximum amount allowed to be contributed by an employee. Matching contributions can be subject to a vesting schedule. See your plan information for details.
Employer maximum: This is the maximum percent of your salary matched by your employer regardless of the amount you decide to contribute. For example, let's assume your employer has a 50 percent match, up to a maximum of 6 percent of your annual salary. If you have an annual salary of $25,000 and contribute 6 percent, your annual contribution is $1,500. With a 50 percent match, your employer will add another $750 to your 401(k) account. If you increase your contribution to 10 percent, your annual contribution is $2,500 per year. Your employer match, however, is limited to the first 6 petcent of your salary and remains at $750.