401K Calculator

Future value of a 401(k) with your contributions, your employer's match and investment growth. Results update as you type.

Future value at retirement
$0.00

Cost breakdown

How this calculator works

Your monthly contribution is your salary times your contribution percentage, divided by twelve, plus the employer match the same way. The balance grows monthly at the annual return divided by twelve, with the contribution added each month.

Results are estimates for education only and are not financial advice.

What is an employer match?

Many employers add money to your 401(k) based on what you contribute, for example 50 cents for each dollar you put in up to a limit. It is part of your compensation, so contributing at least enough to get the full match is usually the first priority.

The formula behind 401(k) growth

Monthly contribution = annual salary × contribution percentage ÷ 12, plus the employer match the same way. Each month, balance = previous balance × (1 + r) + monthly contribution, where r is the monthly return (annual return ÷ 12). Over n months this is the same as: future value = starting balance × (1 + r)^n + monthly contribution × ((1 + r)^n − 1) ÷ r.

How the calculation works, step by step

  1. Your monthly contribution is your salary times your contribution percentage, divided by 12, and the employer match is added the same way.
  2. The monthly return is the annual return divided by 12.
  3. Each month, the balance grows by the monthly return and then the month's total contribution is added, with contributions counted at month end.

Worked example

Start with a $20,000 balance and an $80,000 salary, contributing 10% with a 5% employer match, at a 7% annual return for 30 years. That is $666.67 from you plus $333.33 from your employer, or $1,000.00 a month. After 30 years the balance is $1,382,301, made up of $380,000 contributed and $1,002,301 in investment earnings.

Does the employer match count toward my own contribution limit?

No. The match is separate from your own contribution percentage, although the IRS also sets an overall limit that includes employer contributions. Check the current IRS rules for the year you are planning, since limits change.

What happens to my 401(k) if I change jobs?

Your own contributions are always yours, while the employer match may depend on a vesting schedule. Common options are leaving the account where it is, rolling it into a new employer's plan or an IRA, or cashing out, which usually triggers taxes and penalties.

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