Home › 401(k) Calculator
401(k) Calculator
Project your 401(k) balance at retirement. Enter your salary, contribution rate, employer match, and expected return to see how your savings grow over time.
Your 401(k) details
Year-by-year growth
| Year | Your contributions | Employer match | Balance |
|---|
How a 401(k) grows
A 401(k) is a tax-advantaged retirement savings plan offered by employers. Your contributions come out of your paycheck before federal income tax, reducing your taxable income today. The money grows tax-deferred until you withdraw it in retirement.
The most powerful growth lever is starting early. Thanks to compound interest, money contributed in your 20s and 30s has decades to grow. A single $10,000 contribution at age 25 growing at 7% per year becomes about $148,000 by age 65.
How employer matching works
Many employers match a percentage of what you contribute, up to a cap. A common formula is a 50% match on contributions up to 6% of salary. If you earn $80,000 and contribute 6% ($4,800), your employer adds $2,400 - an instant 50% return on that portion. Always contribute at least enough to capture the full employer match.
2024 contribution limits
| Type | 2024 limit |
|---|---|
| Employee contribution (under 50) | $23,000 |
| Catch-up contribution (age 50+) | $7,500 |
| Total employee limit (50+) | $30,500 |
| Combined employee + employer limit | $69,000 |
Frequently asked questions
How much should I contribute to my 401(k)?
Start by contributing at least enough to get your full employer match - that is free money. Beyond that, aim for 10-15% of gross salary (including the match) as a general guideline. The 2024 employee limit is $23,000 ($30,500 if you are 50 or older).
What is an employer match?
An employer match is additional money your employer deposits into your 401(k) based on your own contributions. A typical match is 50% of contributions up to 6% of your salary. Always contribute enough to capture the full match before considering other savings vehicles.
What annual return should I use?
A common assumption for long-term diversified stock portfolios is 7% per year (after inflation) or about 10% (before inflation). The actual return depends on your fund selection. For conservative planning, use 5-6%; for an optimistic scenario, use 8-10%.
What is the 2024 401(k) contribution limit?
For 2024, the employee contribution limit is $23,000. If you are age 50 or older, you can contribute an additional $7,500 catch-up contribution for a total of $30,500. The combined employer and employee limit is $69,000.
When can I withdraw from my 401(k)?
Penalty-free withdrawals are available at age 59.5. Withdrawals before that age are generally subject to a 10% early withdrawal penalty plus ordinary income tax. Required minimum distributions must begin at age 73.
ClearCalc provides estimates for general information only and is not financial or investment advice. Returns are not guaranteed. Consult a qualified financial advisor for guidance specific to your situation.