401(k) Calculator
Project your retirement savings, see what early withdrawals really cost, and make sure you never leave free employer match money on the table.
Where Your Retirement Money Comes From
Breakdown of your projected balance at retirement.
Adjust the inputs to see your projection.
Where Your Money Goes
How your withdrawal is split between taxes, penalties, and what you keep.
Adjust the inputs to see the breakdown.
Your Annual Contribution Split
What you contribute vs. the free money your employer adds.
Adjust the inputs to see your match breakdown.
Understanding Your 401(k)
What Is a 401(k)?
A 401(k) is a special savings account your employer offers for retirement. Every paycheck, a percentage goes directly into your account before taxes — so you pay less tax today and let the money grow tax-free until retirement. Think of it like a forced savings system where the government gives you a discount for saving.
How Compounding Works
Compounding means your money earns a return, and then that return earns a return too. Example: $10,000 at 7% grows to $10,700 in year one. In year two it earns 7% on $10,700 — not just $10,000. Over 30 years, this snowball effect is enormous. Starting just 5 years earlier can nearly double your ending balance.
Employer Match = Free Money
If your employer offers a match, they will add money to your 401(k) when you contribute. A common example: "We match 100% of your contributions up to 3% of your salary." If you earn $60,000 and contribute 3% ($1,800), they add another $1,800 — that's a 100% instant return on that $1,800. Not contributing enough to get the full match is leaving free money behind.
Early Withdrawal Costs More Than You Think
Taking money out before age 59½ hits you twice. First, the IRS charges a 10% penalty. Then, the full amount is added to your income for the year and taxed at your regular rate. On a $20,000 withdrawal, you could lose $6,400 or more — keeping only $13,600. Plus, you permanently lose all future compounding on that money.
The Real Cost of Waiting
If you invest $300/month starting at 25 with a 7% return, you'll have about $900,000 by 65. If you start at 35, the same $300/month gives you roughly $450,000 — half the money despite only waiting 10 years. The earlier you start, the less you actually have to save each month to reach the same goal.
2025 IRS Contribution Limits
- Employee limit: $23,500 per year
- Catch-up if age 50–59 or 64+: +$7,500
- Catch-up if age 60–63: +$11,250
- Total including employer: $70,000
This calculator is for education only — not a guarantee of future results. Consult a licensed advisor before making retirement decisions.