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# 401(k) Savings Calculator

This 401(k) savings calculator can help you to figure out how large your 401(k) plan might be at retirement. The calculator will predict the 401(k) fund balance at retirement age, along with the annual income you might expect from this type of account.

## Calculator Definitions

The variables used in our online calculator are defined in detail below, including how to interpret the results.

This is your current age in years.

### Expected Retirement Age (Years)

This is your expected retirement age.

### Life Expectancy (Years)

This is your life expectancy when you reach your estimated retirement age. Many people mistakenly believe that life expectancies are in the range of 75 years of age. However, that figure applies only at birth. For example, at age 65, the average life expectancy is 83 years of age.

### Current Amount in 401(k) Fund (\$)

If you currently have a 401(k) fund, then enter the amount in that account here. If you have not yet started funding your 401(k) plan, then you can simply enter zero.

### Annual Contribution to 401(k) (% of Salary)

This is how much you’d like to contribute, or are presently contributing, to your 401(k) plan, stated in terms of the percentage of your salary. By increasing or decreasing your annual contribution percentage, you can see the impact on your 401(k) fund balance at retirement.

### Employer Match (% of Contribution)

Most employers will match employee contributions both to provide a benefit to employees, and to encourage participation in the company’s program. If your employer matches your contribution, then enter that percentage here. If not, then enter zero.

### Employer Maximum (% of Salary)

Some employers will only match up to a certain percentage of their employees’ salary. If your employer has a maximum that applies to their match, then enter that amount here. If your employer does not limit their matching contributions, then enter 100%.

### Expected Annual Return on 401(k) Fund (%)

This is the annual rate of return that you might expect to earn on your 401(k) funds between now and the time you retire. Once again, by increasing or decreasing the expected annual return, you can see the impact on your fund’s balance.

### 401(k) Fund Growth Over Time (\$)

This is the computed 401(k) fund growth over time, showing the fund’s growth each year. This series of values takes into account your inputted growth rate, employee and employer matching, and limits your contributions to the current maximums allowed by law in 2018.

For example, an employee can currently contribute up to \$18,500 (2018) on a before-tax basis. At age 50, this limit increases to \$24,500. This calculator uses these contribution rules when calculating the fund’s growth over time.

### 401(k) Fund Balance at Retirement (\$)

This is the money you will have saved in your 401(k) plan (at retirement age) if you continue making annual contributions to the account, the expected annual return is achieved, and your employer continues matching funds at the rate you’ve specified.

### Annual Income from 401(k) (\$ / Year)

This is the annual retirement income you might expect to receive from your 401(k) account. Keep in mind that withdrawals from 401(k) funds are taxable, and depending on how many years you are from retirement, inflation will decrease the buying power of these future dollars.

401(k) Savings Calculator

Disclaimer: These online calculators are made available and meant to be used as a screening tool for the investor. The accuracy of these calculations is not guaranteed nor is its applicability to your individual circumstances. You should always obtain personal advice from qualified professionals.