💼 401(k) Calculator
Note: Calculations are performed in your selected currency. The final result is an estimate.
📘 How This Calculator Works
This 401(k) calculator estimates the future value of your 401(k) retirement savings based on your current balance, annual contributions, expected return rate, and years until retirement.
It uses the compound interest formula, factoring in your selected contribution frequency (monthly, bi-weekly, weekly, or yearly). The calculation projects how your investments grow over time with regular contributions and compound earnings.
Formula Overview: Future Value = P(1 + r/n)^(nt) + PMT * [((1 + r/n)^(nt) - 1) / (r/n)]
Where P = principal, r = annual rate, n = compounding periods per year, t = time in years, PMT = periodic payment.
❔ Frequently Asked Questions
What is a 401(k)?
A 401(k) is a employer-sponsored retirement savings plan in the United States. It allows employees to save and invest a portion of their paycheck before taxes are taken out.
How accurate is this calculator?
This calculator provides a close estimate based on constant return and contribution rates. Actual investment returns vary year-to-year, and factors like fees, taxes, and income changes are not considered.
Can I change the contribution frequency?
Yes, you can choose monthly, bi-weekly, weekly, or yearly contributions to match your pay schedule and investment strategy for accurate calculations.
What is a realistic expected annual return?
Historically, a diversified stock portfolio averages about 7-10% annual return before inflation. Conservative portfolios (bonds) may average 3-5%. This is not a guarantee of future performance.
Does this account for taxes, inflation, or fees?
No, this calculator provides a pre-tax, nominal (not adjusted for inflation) estimate and does not account for investment fees or taxes due upon withdrawal.
What does the currency selection do?
The currency selector allows you to view the result in your preferred currency symbol. It does not convert the underlying value based on exchange rates unless you input values already converted.