How It Works
The model converts annual salary contributions and the assumed employer match into monthly contributions, then compounds the account monthly at the assumed return.
The result is illustrative and should not be treated as a retirement-income forecast.
The calculator estimates the account balance from employee contributions, an assumed employer match, and the assumed investment return. Contributions are converted to monthly amounts for the projection.
It does not enforce contribution limits or model plan-specific vesting, catch-up contributions, taxes, withdrawals, or employer-match formulas beyond the percentage you enter. Those details can materially change an actual retirement balance.
Formula
- B — Current balance
- C — Monthly combined contribution
- r — Monthly assumed return
- n — Months
Example
Example inputs: Balance $20,000, salary $70,000, 8% employee contribution, 4% match, 7% return, 30 years.
Result: The calculator estimates the projected account value and separates your contributions from employer contributions and growth.
Frequently Asked Questions
Does this model contribution limits?
No. It uses the percentages you enter and does not enforce annual IRS or plan-specific limits.
Does this include the employer match?
Yes, if you enter a match percentage and the calculator's matching assumptions are satisfied by the inputs. Actual plans can use caps, tiers, or other formulas that should be checked in your plan documents.
Does the calculator enforce the annual 401(k) limit?
No. It projects the percentages you enter and does not automatically apply annual IRS limits or catch-up rules. Those limits should be checked separately for the applicable tax year.
This calculator provides estimates for informational purposes only and should not be considered financial, tax, or legal advice.