How to use the 401(k) Calculator
The 401(k) calculator estimates your retirement balance including your contributions, an employer match and yearly salary growth.
What you need to enter
- Annual salary ($)
- Your contribution (% of salary)
- Employer match (%)
- Match up to (% of salary)
- Current balance ($)
- Years to retirement
- Salary growth (% / year)
- Annual return (%)
The formula
Each year: balance = balance × (1 + return) + your contribution + employer match (limited by the match cap). Salary grows by the entered percentage each year.
Worked example
Using the default values in the calculator:
- Annual salary ($): 70000
- Your contribution (% of salary): 8
- Employer match (%): 50
- Match up to (% of salary): 6
- Current balance ($): 20000
- Years to retirement: 30
- Salary growth (% / year): 3
- Annual return (%): 6
| Balance at retirement | $991,570.15 |
| Final-year salary | $169,908.37 |
| First-year contribution | $5,600.00 |
| First-year employer match | $2,100.00 |
Tips for better results
- Always contribute enough to get the full employer match.
- Increase your contribution rate whenever you get a raise.
Common mistakes to avoid
- Ignoring annual IRS contribution limits.
- Assuming the match is guaranteed to continue.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.