401(k) Retirement Calculator

Project your final 401(k) nest egg, incorporating employer matched contributions and compound market growth.

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Final 401(k) Balance
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Lifetime User Contributions
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Lifetime Employer Matched
$0
Formula / Calculation
FV = P(1+i)^n + PMT[((1+i)^n - 1) / i]

Maximizing Your 401(k)

A 401(k) is an employer-sponsored, tax-advantaged retirement savings plan. It remains one of the most powerful wealth-building tools available to the American worker. Because contributions are taken pre-tax from your paycheck, and investments grow tax-deferred, you rapidly accelerate the raw power of compounding over decades.

The Mechanics of the 401(k)

The Employer Match

Many employers will match a percentage of what you contribute (e.g., 100% match up to 5% of your salary). This is literal free money and functionally a 100% instant, guaranteed return on investment.

Pre-Tax Contributions (Traditional)

Money goes in before federal taxes are applied, lowering your taxable income today. You pay taxes when you withdraw the money in retirement.

Post-Tax Contributions (Roth)

Money goes in after being taxed today, but the entire balance grows completely tax-free, and you pay absolutely zero tax on withdrawals in retirement.

Essential Habits for 401(k) Success

At bare absolute minimum, always contribute exactly enough to capture the maximum employer match. Failure to do so is rejecting a free raise.
Whenever you get an annual salary raise, instantly redirect 50% of that raise into an increased 401(k) contribution percentage before you succumb to lifestyle inflation.
If you leave your job, do NOT cash out the 401(k). Roll it over into an IRA to avoid massive 10% penalties and heavy tax burdens.

Frequently Asked Questions

Can I lose money in a 401(k)?
A 401(k) is just an "envelope" to hold investments. If the envelope holds volatile stock funds and the market crashes, the balance drops. However, historically, broad markets always recover over 10-20 year timelines.