Precision Utility
401(k) Retirement
Calculator
2025 Limit
$23,500
Catch-Up 50+
$31,000
Project your 401(k) retirement balance with compound growth, employer matching, and 2025 IRS contribution limits. See how your savings grow year by year and estimate your monthly retirement income using the 4% safe withdrawal rule.
Your Details
Projected Balance at Retirement
$0
Total Contributions
$0
Employer Match Total
$0
Investment Growth
$0
Monthly Retirement Income
$0
How the 401(k) calculator works
Enter your current age, planned retirement age, salary, and contribution percentage. The calculator projects your 401(k) balance using compound growth on both your contributions and your employer's matching contributions.
Each year, your annual employee contribution (salary times your contribution rate) and your employer match are added to the balance. The total then grows at your expected annual rate of return, compounded monthly.
The projected balance is shown alongside a breakdown of how much came from your own contributions, your employer's match, and investment growth. The monthly retirement income estimate uses the widely-cited 4% safe withdrawal rule.
2025 IRS contribution limits
The IRS sets annual limits on how much you can contribute to your 401(k). For 2025:
- Under age 50: $23,500 employee contribution limit
- Age 50 and over: $23,500 plus a $7,500 catch-up contribution, totaling $31,000
- Total limit (employee + employer): $70,000 under 50, $77,500 age 50+
Employer match contributions do not count toward your personal $23,500 limit, but they do count toward the combined limit. Always contribute at least enough to capture the full employer match.
Understanding employer match
An employer match is additional money your company puts into your 401(k) based on your own contributions. Common match formulas include:
- Dollar-for-dollar up to 3%: If you earn $75,000 and contribute 3%, your employer adds another $2,250
- 50 cents on the dollar up to 6%: You contribute 6% ($4,500), your employer adds 3% ($2,250)
- Flat percentage: Some employers contribute a flat 3-5% regardless of your contributions
This calculator models the match as a flat percentage of your salary. Adjust the employer match slider to reflect your company's actual match rate. Not taking full advantage of an employer match is leaving free money on the table.
The power of compound growth
Compound growth is the engine behind long-term retirement savings. When your investments earn returns, those returns get reinvested and start earning their own returns. Over decades, this snowball effect dramatically accelerates your balance.
For example, $10,000 invested at 7% annual return grows to roughly $76,000 over 30 years with no additional contributions. Add $500 per month in contributions and the balance reaches over $680,000. Time in the market is your greatest advantage.
The historical average annual return of the S&P 500 is approximately 10% before inflation. After adjusting for inflation, a 6-8% expected return is a reasonable planning assumption. This calculator compounds monthly for maximum accuracy.
Frequently asked questions
How much can I contribute to my 401(k) in 2025?
The IRS limit is $23,500 if you're under 50, and $31,000 if you're 50 or older (including the $7,500 catch-up contribution). Employer match contributions do not count toward your personal limit.
What is an employer 401(k) match?
An employer match is when your company contributes additional money to your 401(k) based on how much you contribute. A common match is 50% of your contributions up to 6% of your salary. This is essentially free money toward your retirement.
How does compound interest work in a 401(k)?
Compound interest means your investment returns earn their own returns over time. Your contributions, employer match, and previous gains all grow together. The longer your money stays invested, the more powerful compounding becomes.
What is the 4% rule for retirement income?
The 4% rule suggests you can withdraw 4% of your retirement savings each year without running out of money over a 30-year retirement. A $1,000,000 balance would provide roughly $40,000 per year or $3,333 per month.
When can I withdraw from my 401(k) without penalty?
You can generally withdraw penalty-free starting at age 59 1/2. Early withdrawals typically incur a 10% penalty plus income tax. Some exceptions exist, such as the Rule of 55 for those who leave their job at age 55 or later.
Should I max out my 401(k)?
At a minimum, contribute enough to get your full employer match. Beyond that, maxing out offers significant tax advantages and accelerates retirement savings through compound growth. Consider your overall financial picture and other goals.
What expected rate of return should I use?
The historical average return of the S&P 500 is roughly 10% before inflation, or about 7% after. Most financial planners recommend 6-8% as a reasonable long-term estimate depending on your asset allocation and risk tolerance.