401(k) Calculator
Calculate 401(k) balance at retirement with employer match, contribution rate, and investment return. Shows year-by-year growth and whether you are on track for retirement.
401(k) Early Withdrawal Costs Calculator
Maximize Employer 401(k) Match Calculator
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How It Works
Enter current age, retirement age, current 401(k) balance, salary, contribution % (pre-tax), employer match %, and expected return. The calculator shows projected balance at retirement and year-by-year growth. Adjust contribution rate until the projected balance meets your retirement goal.
FV = PV(1+r)^t + PMT×[(1+r)^t−1]/r (PMT includes employer match)Age 30, $50k/yr, 10% contribution + 5% match, 7%, retire 65 → ~$1.8MEmployer match is an immediate guaranteed return. A 50% match on 6% of salary at $60k/yr: you contribute $3,600/yr, employer adds $1,800/yr. That $1,800/yr additional at 7% over 30 years = $181,000 extra. Always contribute at least the match percentage — it is the highest return available.
Match return = match% / your contribution% (before growth)5% salary contributed, 50% match = immediate 50% return on matched portionWorkers 50+ can contribute $7,500 extra/year ($30,500 total in 2024). At 7% return with 15 years to retirement, $7,500/yr extra adds $189,000 to the nest egg. The calculator applies the catch-up contribution automatically when current age is 50 or older.
Extra $7,500/yr at 7% for 15yr = $189,000 additionalAge 52, retire 67, extra $7,500/yr at 7% → +$189k at retirementThe calculator compares your projected balance to the needed nest egg (based on spending goals from retirement planner). Key benchmark: savings equal to 1× salary by 30, 3× by 40, 6× by 50, 8× by 60, 10× by 67. If behind, the calculator shows the required contribution increase to catch up.
Benchmarks: 1× by 30, 3× by 40, 6× by 50, 10× by 67Age 40, $80k salary, should have ~$240k in 401(k)Traditional 401(k) reduces taxable income immediately. In the 22% bracket, a $10,000 contribution costs only $7,800 after-tax savings ($2,200 tax reduction). Every dollar in traditional 401(k) effectively costs 78 cents (at 22%). The deferred tax advantage compounds over decades.
After-tax cost = contribution × (1 − marginal tax rate)$10k traditional 401k in 22% bracket: net cost = $7,800Quick Reference
Verify these in the calculator above.
Limit
2024 employee limit
$23,000 ($30,500 if 50+)
Match
Typical employer match
50% on first 6%
Free money
Match return on matched $
50-100% immediate
On track
Benchmark: age 40
3× annual salary
Tax saving
$10k traditional, 22% bracket
Net cost $7,800
Growth
7% return, 30yr, $500/mo
FV ≈ $567k
Penalty
Early withdrawal 10% penalty
Plus income tax
Catch-up
Catch-up after 50: extra/yr
$7,500
Tips & Shortcuts
Always contribute at least enough to get the full employer match — it is an immediate 50-100% return that no other investment matches.
The 401(k) annual limit of $23,000 (2024) is per person — max out if your budget allows. Combined with employer match, you can shelter up to $69,000/year.
Increase your contribution rate by 1% each time you get a raise — you will not notice the difference in take-home pay but it compounds significantly.
Check your 401(k) investment options and make sure you are not sitting in the default "stable value" or money market fund — these dramatically underperform a diversified stock fund over 30 years.
After 50, the catch-up contribution allows $7,500 extra per year — use it if you are behind on savings.
Common Mistakes
Not contributing enough to get the full employer match
Leaving employer match on the table is giving up free money. A 50% match on 6% of salary is a guaranteed 50% return on those dollars — no investment beats this. Always match the maximum.
Withdrawing early from 401(k)
A 10% penalty plus income tax makes early withdrawal extremely expensive. A $20,000 withdrawal in the 22% tax bracket costs $6,400 immediately. Plus, losing that $20,000 of compound growth over 25 years costs $100,000+.
Using the default investment fund
Many 401(k) default investments are stable value or money market funds earning 1-2%. A target-date fund or diversified index fund earning 7% makes a massive difference over 30 years — check your allocations.
Stopping contributions during market downturns
Market downturns are buying opportunities for long-term investors. Stopping contributions means missing lower prices. Stay the course — time in market beats timing the market.
Not increasing contributions with raises
Keep contribution rate static while salary grows means saving a smaller share over time. Set a reminder to increase by 1% with each raise until you reach 15-20% of gross income.
Frequently Asked Questions
A 401(k) is an employer-sponsored retirement savings account. Contributions are pre-tax (traditional) or post-tax (Roth). Traditional: contributions reduce taxable income now, taxed on withdrawal. Roth: taxed now, tax-free in retirement. Employer match is free money — always contribute enough to get the full match.
Employer match is free money added to your 401(k). Common: 50% match on up to 6% of salary = 3% free contribution. 100% match on first 3% = another 3% free. Always contribute at least enough to get the full match — it is an immediate 50-100% return on that contribution.
2024 limit: $23,000 for employees under 50. Catch-up contribution for 50+: additional $7,500 = $30,500 total. Combined employee + employer limit: $69,000 (or $76,500 with catch-up). These limits apply across all 401(k) plans with the same employer.
A diversified stock portfolio has averaged about 10%/yr nominally and 7%/yr after inflation historically. For conservative planning, use 6-7% nominal or 4-5% real (after inflation). The calculator shows results at multiple return assumptions so you can see the range.
Roth is better if your tax rate will be higher in retirement than now (younger workers, expecting income growth). Traditional is better if your tax rate will be lower in retirement (high earners near retirement). If unsure, split between both.
Yes. Contribute to 401(k) first to get the full employer match, then consider maxing an IRA ($7,000 limit in 2024, $8,000 if 50+). If you have remaining budget, return to maxing the 401(k). High earners may be limited on Roth IRA contributions but not Roth 401(k).
Withdrawals before age 59½ face a 10% early withdrawal penalty plus ordinary income tax. Exceptions include first-home purchase, disability, 72(t) equal periodic payments. Early withdrawal is extremely expensive — avoid it. A $10,000 withdrawal in the 22% tax bracket costs $3,200 in taxes and penalty immediately, plus all future growth.
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