401(k) Retirement Calculator

Frequently asked questions

What is a 401(k) and how does employer matching work?

A 401(k) is a US employer-sponsored retirement account funded with pre-tax (or Roth after-tax) contributions. Many employers match a portion of your contributions, for example 100% match up to 4% of salary. That match is essentially free money and one of the highest-return parts of any retirement plan.

How accurate is this 401(k) projection?

It is a forward estimate based on the return, salary growth, and inflation rates you enter. Real results depend on actual market performance, tax rules, IRS contribution limits, vesting schedules, and fees. Use it for planning, not as a guarantee.

What is the 4% rule for retirement income?

The 4% rule suggests you can withdraw 4% of your retirement balance in year one and adjust for inflation each year after, with a reasonable chance the portfolio lasts 30 years. This calculator uses it to estimate monthly retirement income as balance x 0.04 / 12.

Should I contribute more than my employer match?

Getting the full employer match first is almost always the right move. After that, many planners suggest contributing up to the annual IRS limit if your budget allows, especially in a Roth 401(k) if you expect higher taxes in retirement.

What return rate should I use?

A long-term US stock market average is often cited around 7% after inflation (or 10% nominal). If your plan is bond-heavy or you are close to retirement, use a lower rate. This calculator separates nominal balance from inflation-adjusted real purchasing power.

What about taxes on withdrawal?

Traditional 401(k) withdrawals are taxed as ordinary income in retirement. Roth 401(k) qualified withdrawals are tax-free. This calculator shows pre-tax balances; factor in your expected retirement tax bracket when planning actual spending.