401(k) Calculator

Project your 401(k) balance at retirement including employer matching contributions.

Savings Plan

1%20%
1 yr40 yrs

Future Value

₹10,66,390

Total Invested

₹7,00,000

Total Returns

₹3,66,390

Wealth Multiplier

InvestedReturns

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401(k) Calculator Formula & How It Works

Annual Contribution = Salary × Contribution% | Employer Match = min(Contribution, Match Cap) × Match%
  • 2025 contribution limit: $23,500 ($31,000 if age 50+)
  • Common employer match: 50–100% up to 3–6% of salary
  • Tax benefit: traditional 401k reduces taxable income now
  • FV = (Employee + Employer Contributions) × [(1+r)ⁿ − 1] / r

A 401(k) is a tax-advantaged retirement account. Traditional 401(k) reduces your taxable income now; Roth 401(k) provides tax-free withdrawals in retirement. Employer match is free money — always contribute at least enough to capture the full match. Compound growth tax-deferred over 30+ years is the most powerful wealth-building tool available.

401(k) Calculator FAQs

How much should I contribute to my 401(k)?

At minimum: enough to get the full employer match (free money). Target: 15% of gross income including employer match. 2025 employee contribution limit: $23,500 ($31,000 for 50+). Always max out employer match before other accounts.

Traditional vs Roth 401(k) — which is better?

Traditional: tax deduction now, taxed at withdrawal. Best if you're in a higher tax bracket now than in retirement. Roth: no deduction now, tax-free in retirement. Best if you're in a lower bracket now or expect higher taxes later. Many people benefit from both.

What happens to my 401(k) if I leave my job?

Options: roll over to IRA (recommended — broadens investment choices), roll over to new employer's 401(k), keep in old employer plan (if balance > $5,000), or cash out (not recommended — triggers taxes + 10% penalty if under 59½).

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