Calculate 401k growth with employer matching, contribution limits, and projected retirement income using the 4% rule
IRS Contribution Limits (2024)
Under 50: $23,000 | 50 and Over: $30,500
You might also find these calculators useful
How much will your 401k be worth at retirement? Our calculator factors in your contributions, employer match, investment returns, and salary growth to project your nest egg. See how small changes today can mean hundreds of thousands more at retirement.
A 401k grows through three sources: your contributions, employer matching, and investment returns. The power of compound growth means starting early matters enormously. A 25-year-old contributing $500/month at 7% return will have roughly $1.2M by 65. Starting at 35 with the same contribution yields only about $567k.
Future Value Formula
FV = PV(1+r)^n + PMT × [(1+r)^n - 1] / rDetermine optimal contribution percentage based on retirement goals.
Ensure you're capturing the full employer match benefit.
See how different retirement ages affect your nest egg.
Calculate how much you need to save to reach retirement goals.
At minimum, contribute enough to get the full employer match—that's an immediate 50-100% return. Financial advisors often recommend 15% of income for retirement (including employer match). More is better if you can afford it.
For 2024: $23,000 for those under 50, plus $7,500 catch-up for 50+, totaling $30,500. These limits apply to employee contributions only—employer matching is additional, up to a combined limit of $69,000.
A common match is 50% of your contribution up to 6% of salary. So if you earn $60,000 and contribute 6% ($3,600), employer adds 50% of that ($1,800). That's $5,400 total—$1,800 is free money you don't want to leave on the table.
The 4% rule suggests withdrawing 4% of your portfolio in year one of retirement, then adjusting for inflation. It's designed to last 30 years. A $1M portfolio would provide $40,000/year initially. It's a guideline, not a guarantee.
The S&P 500 has returned about 10% historically, but 6-7% is more conservative for planning. You might use 7% for stocks-heavy portfolios, less for conservative allocations. Lower is safer for planning purposes.