Calculate your 401k retirement savings with employer match and compound growth projections
6,000 annual, 50% match, 7% return, 40 years
15,000 annual, 100% match up to 6%, 7% return, 20 years
20,000 annual, 50% match, 6% return, 15 years
23,000 annual, 100% match up to 6% ($5,000), 8% return, 25 years
| Feature | Traditional | Roth |
|---|---|---|
| Tax on Contributions | Pre-tax ✓ | After-tax |
| Tax on Withdrawals | Taxed | Tax-free ✓ |
| Best For | Higher tax now | Lower tax now |
| RMDs Required? | Yes (age 73) | No ✓ |
Projection model:
A 401k is an employer-sponsored retirement savings plan with significant tax advantages:
Your projected balance combines three engines: your current account value, new annual contributions, and compounding investment growth. In a fixed annual projection, the model is:
Here, is your current balance, is expected annual return, is years to retirement, and is your yearly contribution including employer match. The formula does not predict market timing, but it's a useful planning baseline for contribution strategy, withdrawal sequencing, and target retirement age.
Example: assume you already saved $40,000, contribute $9,000 yearly, receive a $3,000 employer match, and model a 7% long-term return. Over 25 years, your personal contributions plus match total $300,000, while compounding can add several hundred thousand more. Run this same case with 5%, 6%, and 7% return assumptions to build a range instead of a single-point forecast. Planning with a range helps you avoid overconfidence and keeps your retirement timeline resilient when markets underperform.
Common mistake #1 is ignoring vesting. Some employer match dollars are not immediately yours, so a job change can reduce the match benefit. Common mistake #2 is contributing below the match threshold; that leaves guaranteed compensation on the table. Common mistake #3 is using an unrealistically high expected return and then under-saving. A practical workflow is: capture full match, raise contribution annually, rebalance once or twice per year, and review assumptions when salary or expenses change.
Use cases where this calculator is especially useful: comparing Traditional vs Roth contribution split, testing whether an annual bonus should go to debt payoff or retirement, and evaluating the impact of retiring 3 to 5 years earlier. If you're age 50+, include catch-up contributions in your annual input. If you're evaluating a new job offer, run side-by-side scenarios with different match percentages, vesting schedules, and salary growth expectations.
This tool is educational and should support, not replace, personalized planning. Tax bracket changes, Social Security timing, pension income, and required minimum distribution rules can materially change your retirement cash flow. Confirm current contribution limits and withdrawal rules with official IRS publications and your plan administrator before making final decisions.