401(k) Contribution & Growth Calculator

Planning for retirement is one of the most important steps you can take toward securing your financial future. A 401(k) plan allows you to save money for retirement in a tax-advantaged way, often with additional contributions from your employer. But how much should you contribute, and how much will it grow over time?

Use our advanced 401(k) Contribution & Growth Calculator to estimate the future value of your retirement savings based on your income, contribution rate, employer match, expected investment return, inflation, and salary growth. Whether you’re just getting started or optimizing your savings strategy, this tool provides valuable insights to help you stay on track.

Start by entering your current salary, contribution rate, and expected annual return. You can also adjust factors like employer match, inflation rate, and retirement age to see how they impact your long-term financial outlook.

401(k) Contribution & Growth Calculator

Understanding your 401(k) growth and long-term retirement strategy

Planning for retirement is more than just setting aside money — it’s about building a strategic, tax-efficient, and sustainable plan for your future. The 401(k) plan is one of the most widely used retirement savings tools in the United States, offering both tax advantages and the potential for substantial investment growth. Our 401(k) Contribution & Growth Calculator helps you visualize how much your retirement account could be worth in the future, based on your current salary, contribution habits, employer match, investment performance, inflation, and more.

Traditional vs Roth 401(k) – tax treatment and strategic choice

A traditional 401(k) plan allows you to make pre-tax contributions directly from your paycheck, reducing your taxable income today while deferring taxes until retirement. Alternatively, a Roth 401(k) requires you to pay taxes on contributions now, but offers tax-free withdrawals later. Choosing between the two depends on your current and expected future income tax brackets. This calculator helps you model the financial impact of each option, making it easier to decide which plan aligns with your long-term goals.

Maximizing employer match – free money you shouldn’t miss

One of the most powerful benefits of a 401(k) plan is the employer match. Many employers match 50% to 100% of your contributions up to a certain percentage of your salary — typically between 3% and 6%. These employer contributions are essentially free money that not only increase your total investment but also compound over time, significantly enhancing your retirement savings. Failing to take full advantage of the employer match is one of the most common and costly mistakes employees make.

Our calculator helps you understand this employer match in real numbers. You’ll see exactly how much your employer adds to your account each year, and how that grows over time alongside your own contributions.

Modeling realistic investment returns

Another key variable is your expected annual investment return. Historically, diversified portfolios that include both stocks and bonds have returned an average of 6–8% per year. While past performance doesn’t guarantee future results, modeling your 401(k) with a realistic return expectation helps you plan for different market scenarios. You can even run multiple simulations with conservative and optimistic return rates to see how different outcomes affect your final balance.

Why inflation adjustment matters

Inflation, often overlooked by new savers, plays a critical role in retirement planning. Over time, inflation erodes purchasing power, meaning the same amount of money will buy fewer goods and services in the future. A retirement balance of $1 million might sound like a lot today, but in 30 years, its value could be significantly diminished unless inflation is accounted for. Our calculator lets you input an expected inflation rate (e.g., 2.5%) so you can see both the nominal and inflation-adjusted (real) value of your future savings.

How much should you contribute to your 401(k)?

Many users also want to know: how much should I contribute to my 401(k)? While financial experts often recommend saving 10% to 15% of your gross income for retirement, even starting with a lower rate (e.g., 5%–6%) is better than nothing — especially if your employer offers a match. As your salary increases over time, gradually raising your contribution rate by 1% each year can have a dramatic compounding effect. Our calculator includes a field for expected annual salary growth, allowing you to project how rising income translates to higher contributions and investment returns over time.

Estimating retirement income using the 4% rule

It’s also helpful to estimate how long your 401(k) savings will last once you retire. This is where withdrawal rate comes in. The commonly cited “4% rule” suggests that you can withdraw 4% of your savings annually in retirement without running out of money for at least 30 years. Based on your final account balance, our calculator estimates your annual retirement income using your preferred withdrawal rate. This feature gives you a clearer picture of how much monthly or yearly income you can realistically expect from your 401(k) alone.

Catch-up contributions after age 50

If you’re 50 years old or older, the IRS allows you to make additional “catch-up contributions.” For 2025, the standard 401(k) contribution limit is $23,000 per year, but individuals over 50 can contribute an extra $7,500, for a total of $30,500. These catch-up contributions can help you make up for lost time and close retirement savings gaps. Our calculator factors this in automatically based on your current age, ensuring you stay within the allowed contribution limits.

Why 401(k) savings are meant for the long term

It’s important to remember that 401(k) savings are generally intended for long-term use. Withdrawing funds before age 59½ typically results in taxes and penalties, although there are some exceptions. Understanding the long-term nature of these accounts is key to building a stable retirement strategy.

Keeping your plan flexible and up to date

Another benefit of this calculator is its flexibility. You can update the inputs at any time to reflect changes in your life circumstances — such as a raise, job change, marriage, or a shift in investment strategy. This makes it a dynamic tool that evolves with your career and financial goals. We recommend using it at least once a year, or any time you make significant changes to your financial plan.

Personalized, real-time retirement planning insights

Unlike static retirement planning spreadsheets or generic financial advice articles, this calculator offers personalized results based on your real data. The output is immediate and requires no signup, making it a convenient way to explore your retirement future without friction. Whether you’re planning for early retirement, traditional retirement at 67, or continuing to work part-time into your 70s, the calculator helps you evaluate different paths with data-driven confidence.

Summary – why this calculator matters

In summary, the 401(k) Contribution & Growth Calculator is more than just a financial tool — it’s a visual planner, a goal-setting assistant, and a motivator. It shows how every decision you make today — from your contribution rate to your investment approach — can shape your financial security tomorrow. The earlier you start and the more consistently you contribute, the better positioned you’ll be to enjoy a comfortable, worry-free retirement.