Project your 401k and retirement savings growth with employer match, investment returns, and inflation adjustment. Year-by-year projections included.
This retirement calculator projects your 401k and savings growth over time, accounting for employer match, expected investment returns, and inflation. The results show your projected nominal balance at retirement and its inflation-adjusted purchasing power in today's dollars. The 4% rule estimate shows how much monthly income your savings could support. Starting early has a dramatic impact — 10 more years of compounding can more than double your ending balance. All calculations run in your browser — your data never leaves your device.
Retirement projections use the future value of an annuity formula to model how regular contributions compound over time toward a final portfolio balance at retirement. The calculator adds employer match to your monthly contributions and compounds the entire balance at your expected annual return:
Total Monthly Contribution = Employee + Employer Match
FV = Current Balance × (1+r)^n + Monthly × [(1+r)^n − 1] / r
Inflation-Adjusted = FV / (1 + inflation rate)^years
Where r is the monthly investment return (annual rate / 12) and n is the total months until retirement. The calculator then applies an inflation adjustment (typically 2.5–3%) so you can see what your projected balance is worth in today's purchasing power. Finally, dividing the inflation-adjusted balance by 25 (the inverse of the 4% withdrawal rate) gives an estimate of sustainable annual retirement income.
David is 30 years old and has $12,000 saved in his 401k. He earns $68,000/year and contributes 6% ($340/month). His employer matches 50% up to 6%, adding $170/month. Total monthly contribution: $510/month. He expects a 7% annual return and plans to retire at 65.
Over 35 years: r = 7%/12 = 0.583%/month, n = 420 months. Future value of his $12,000: $12,000 × (1.00583)^420 ≈ $12,000 × 11.5 = $138,000. Future value of his $510/month contributions: $510 × [(11.5 − 1) / 0.00583] = $510 × 1,800 = $918,000. Total projected balance: ~$1,056,000.
Inflation-adjusted at 2.5% over 35 years: $1,056,000 / (1.025)^35 = $1,056,000 / 2.37 = approximately $446,000 in today's dollars. At the 4% rule, that supports about $17,800/year or ~$1,480/month in real purchasing power. This is a starting point — increasing his contribution rate to 10% or more, or retiring at 67 instead of 65, dramatically improves the outcome.
Fidelity recommends saving 1× your annual salary by age 30, 3× by 40, 6× by 50, 8× by 60, and 10× by age 67. On a $75,000 salary, that translates to $75K by 30, $225K by 40, $450K by 50, and $750K by retirement. These benchmarks assume you will replace about 45% of your income in retirement from savings (with Social Security providing the rest). They are guideposts, not hard rules — your actual retirement need depends on your planned spending, desired retirement age, health, and other income sources. Use this calculator to model your specific situation rather than relying on one-size-fits-all benchmarks.
The 4% rule, developed from the "Trinity Study," suggests that retirees can withdraw 4% of their starting portfolio balance in year one, then adjust that amount for inflation each subsequent year, and have a very high probability (historically 95%+) that their portfolio lasts 30 years. A $1,000,000 portfolio at retirement supports $40,000/year in inflation-adjusted withdrawals. Some financial planners now recommend 3–3.5% for those retiring early (before 65) or expecting a 40+ year retirement, as the original study was based on 30-year horizons. The 4% rule is a starting point for planning, not a guarantee.
The minimum you should contribute is enough to capture your full employer match — anything less is leaving guaranteed free money on the table (an instant 50–100% return on that portion of your contribution). Beyond the match, aim for a total savings rate of 15% of gross income toward retirement, including employer contributions. The 2026 401k contribution limit is $23,500 per year for employees under 50 (plus a $7,500 catch-up contribution if you are 50 or older). If you cannot hit 15% right away, start with whatever you can and increase your contribution rate by 1% each year or whenever you get a raise.
Employer match is free money your employer contributes to your 401k when you contribute. A typical match is "50% up to 6% of salary" — if you earn $75,000 and contribute 6% ($4,500/year), your employer adds $2,250. Always contribute at least enough to capture the full match before directing money elsewhere. Employer contributions typically vest over time (often 3–5 years), meaning you must stay with the company for a period before the match money is fully yours. Check your plan's vesting schedule, especially if you are considering changing jobs, as unvested funds revert to the employer.
Retirement readiness depends on your savings balance, expected annual expenses in retirement, Social Security benefits, any pension income, and your expected return on investments. A common benchmark is having 25× your annual retirement expenses saved — derived directly from the 4% rule. If you expect to spend $60,000/year in retirement, you need about $1.5 million. Social Security benefits can offset a significant portion of that need, reducing the required portfolio. Use this retirement calculator to project your balance year by year and see at what age your savings might cross your target threshold, then adjust your contribution rate or expected retirement age accordingly.