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401K Calculator

Use this free 401K Calculator to project the growth of your retirement contributions. Simple, accurate, and easy to use for employees.

Your 401(k) is likely your most powerful wealth-building tool, thanks to employer matching and tax advantages. The 401K Calculator helps you project the future value of this account based on your salary contributions and your employer's match.

Seeing the long-term impact of that "free money" from your employer can be highly motivating. This tool encourages you to maximize your contributions to secure your future.

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When to Use This Calculator

Use the 401K Calculator when starting a new job or during open enrollment.

  • Maximize Match: ensure you are contributing enough to get the full employer match.
  • Raise Allocation: "If I increase my contribution from 3% to 5%, how much extra will I have in 20 years?"

Example Scenario

Salary: $70,000. You contribute 6%. Employer matches 50% up to 6% (so 3% free).

Total annual contribution: $4,200 (You) + $2,100 (Employer) = $6,300.

Over 30 years at 7% growth, that extra employer match accounts for over $200,000 of your final balance!

Formula & Calculation Method

Formula Used

Result = f(Inputs)

Variable Explanation

  • Inputs: User provided values
  • Result: Calculated output

Step-by-Step Calculation

  1. 1. Process user inputs.
  2. 2. Apply standard financial formulas specific to this calculator type.
  3. 3. Display result.

Interpretation Notes

Refer to specific financial literature for the exact derivation of this specific calculator.

How to Interpret the Results

Employee vs Employer Contribution: Notice how much of your final balance comes from the match. Never leave that money on the table.

Common Mistakes

Cashing Out Early: Taking money out when changing jobs often results in taxes plus a 10% penalty. It destroys the compounding curve.