401(k) Calculator

Your 401(k) balance at retirement is based on the values you plug into the calculator — your total planned annual contribution, your current age and retirement age and the rate of return. The 401(k) calculator assumes 2% annual income growth. There is no inflation assumption.

The employer match limit refers to the maximum percentage of your salary that your employer will match. For example, many employers match 50% of your contributions, up to 6% of your salary. Your employer match limit would be 6% in this case.

Key 401(k) definitions

• 401(k) plan: A defined contribution plan that allows employees to invest a portion of their salary for retirement. Some employers match employee contributions up to a certain percentage.

• 401(k) fees: These are charged by 401(k) plan administrators for covering administrative costs, plan management, and more. These fees vary by plan, and will reduce your expected rate of return. Our calculator assumes fees of .5%.

• Annual income: The amount of money earned this year from your employer. For the purposes of this calculator, do not include other income sources to best calculate your 401(k) plan balance by retirement.

• Annual income growth: Our calculator assumes 2% annual income growth.

• Cash out: This refers to withdrawing the money from your 401(k) before age 59½. If you want to cash out your 401(k) early, in most cases, there are additional taxes and penalties.

• Contribution: The IRS sets a limit on how much can be put into this plan every year, also known as an annual 401(k) contribution limit. That limit is $23,000 in 2024 and $23,500 in 2025. (In 2024 and 2025, people age 50 and older can contribute an extra $7,500 as a catch-up contribution. In 2025, due to the Secure 2.0 Act, those ages 60 to 63 get a higher catch-up contribution of $11,250.)

• Current age: The age you are turning this calendar year.

• Current account balance: The amount currently in your 401(k) plan.

• Employer match: This refers to the amount your employer puts in your 401(k) in addition to your contribution. It can range from 0% to 100%, and typically depends on how much you contribute. In 2024, the combined limit both you and your employer can contribute to your plan cannot exceed $69,000 or 100% of employee compensation, whichever is less. In 2025, that increases to $70,000.

• Estimated rate of return: A return is the money you earn or lose from an investment. The estimated annual return expected from your 401(k) investments defaults to 6%, but this can be adjusted

• Rollover: Some people roll over old 401(k)s into Roth or traditional IRAs when they switch jobs. That’s often in part because IRAs typically have more investment choices. For details on how to rollover a workplace plan, read our 401(k) rollover guide.

• Retirement age: The age you retire. Full Social Security benefits begin at age 67 for people born in 1960 and later. Early retirement benefits are available at 62, but at a lower monthly amount.

» Want to convert your 401(k) to an IRA? See NerdWallet’s list of the best rollover IRA providers