401(k) Retirement Calculator
Plan your retirement savings and see how your 401(k) could grow over time.
Why Retirement Planning Matters
A 401(k) retirement plan is one of the most powerful tools for building long-term wealth. This calculator helps you understand how consistent contributions, employer matching, and compound growth can significantly impact your retirement savings over time.
How to Use This Calculator
- Current Age & Retirement Age: Determines your investment time horizon
- Current Savings: Your existing 401(k) balance
- Annual Contribution: Your yearly contribution (not including employer match)
- Employer Match: Your employer's matching contribution percentage
- Match Limit: Maximum percentage of your salary your employer will match
- Annual Return: Expected average annual investment return (7–10% is typical for stocks)
- Inflation Rate: Expected long-term inflation rate (~3% historical average)
Key Retirement Concepts
Compound Growth
Your money grows exponentially as earnings generate their own earnings over time.
Employer Matching
Free money from your employer — always contribute enough to get the full match.
Tax Advantages
Traditional 401(k): tax-deferred growth. Roth 401(k): tax-free withdrawals.
Inflation Impact
Your money loses purchasing power over time — investments should outpace inflation.
Formula Used
FV = (P × (1+r)ⁿ) + [C × ((1+r)ⁿ - 1)/r]Where:
- P = current savings
- C = annual contribution
- r = annual return rate
- n = years until retirement
Contribution Benchmarks
| Age Group | Recommended Savings |
|---|---|
| 30 years old | 1× annual salary saved |
| 40 years old | 3× annual salary saved |
| 50 years old | 6× annual salary saved |
| 60 years old | 8× annual salary saved |
Retirement Savings Tips
- ✅ Start early — Time is your greatest ally in compounding
- ✅ Maximize employer match — It's essentially free money
- ✅ Increase contributions annually — Aim for 15–20% of income
- ✅ Diversify investments — Balance stocks and bonds appropriately
- ✅ Review regularly — Adjust as your situation changes
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