Finance
Retirement Calculator
Project a 401(k) or IRA to retirement, value the employer match, and compare Roth against traditional.
Result
Enter your numbers and press Calculate to see the result.
Calculating…
How the projection works
A retirement balance is your current savings compounded forward, plus every future contribution compounded from the year it goes in. The second part matters more than most people expect, because money added at 40 has 25 years to grow and money added at 60 has five.
final = balance × (1 + r)ⁿ + annual contribution × ((1 + r)ⁿ − 1) ÷ r
Where r is the expected annual return and n the years to retirement. The second term is the future value of an annuity — the standard way to value a stream of regular payments.
The employer match is the highest return available
A typical match is "50% of the first 6%" — contribute 6% of salary and the employer adds 3%. That is an instant 50% return on the matched portion, before any investment growth. No market delivers that reliably, which is why matched contributions come before every other savings decision.
| Match formula | You contribute | Employer adds | On a $75,000 salary |
|---|---|---|---|
| 50% of first 6% | 6% | 3% | $2,250 a year |
| 100% of first 3% | 3% | 3% | $2,250 a year |
| 100% of first 6% | 6% | 6% | $4,500 a year |
| Safe harbor non-elective | Nothing required | 3% | $2,250 a year |
Contributing less than the match limit leaves money on the table permanently — you cannot go back for it. Contributing more than the limit still helps you, but earns no additional match.
Safe harbor plans are a specific design that exempts the employer from annual nondiscrimination testing in exchange for a guaranteed contribution. Their practical advantage for you is that safe harbor contributions are immediately 100% vested, where a standard match often vests over three to six years.
Roth or traditional
| Traditional | Roth | |
|---|---|---|
| Contributions | Pre-tax — reduces taxable income now | After-tax — no deduction now |
| Growth | Tax-deferred | Tax-free |
| Withdrawals | Taxed as ordinary income | Tax-free if qualified |
| Required distributions | Yes, from age 73 | No, for Roth IRAs |
| Better when | Your tax rate falls in retirement | Your tax rate rises, or stays the same |
The comparison reduces to a single question: is your tax rate higher now or later? If the rate is identical at both ends, the two are mathematically equivalent — the maths is symmetric, and neither wins.
In practice Roth carries three advantages that do not appear in the arithmetic. There are no required minimum distributions on a Roth IRA, so the money can stay invested indefinitely. Tax-free withdrawals do not push you into a higher bracket or increase how much of your Social Security is taxed. And a Roth is worth more per dollar of contribution limit, because the limit applies to after-tax money — $7,000 in a Roth is more real savings than $7,000 pre-tax.
The employer match is always traditional, regardless of which type you elect, so most people end up with both anyway.
How much do you need to retire?
The common answer is the 4% rule: you can withdraw 4% of the balance in the first year of retirement, adjust for inflation each year after, and have a high probability of the money lasting 30 years. Stated backwards, it becomes a target:
target = annual spending in retirement × 25
| Annual spending | Target balance | Monthly income it supports |
|---|---|---|
| $40,000 | $1,000,000 | $3,333 |
| $60,000 | $1,500,000 | $5,000 |
| $80,000 | $2,000,000 | $6,667 |
| $100,000 | $2,500,000 | $8,333 |
Two adjustments make these figures less alarming. Social Security typically covers a meaningful share of spending, so the portfolio only has to fund the gap. And most people spend less in retirement than while working — no commuting, no retirement contributions, and usually no mortgage.
The rule's known weakness is sequence of returns risk. A severe market fall in the first few years of withdrawals does far more damage than the same fall later, because you are selling assets while they are cheap. Many planners now use a more conservative 3.5%, or vary withdrawals with market performance.
Savings benchmarks by age
A widely used rule of thumb expresses targets as a multiple of current salary:
| Age | Target saved | On a $75,000 salary |
|---|---|---|
| 30 | 1× salary | $75,000 |
| 40 | 3× salary | $225,000 |
| 50 | 6× salary | $450,000 |
| 60 | 8× salary | $600,000 |
| 67 | 10× salary | $750,000 |
Treat these as direction rather than verdict. They assume a continuous career, a steady salary, and retirement at 67, and they are far above what most households actually hold — median balances run well below the targets at every age. Being behind the benchmark is normal, not disqualifying.
Contribution limits and catch-up
Both 401(k)s and IRAs cap annual contributions, and the limits are revised most years for inflation. Employer matches do not count against your personal 401(k) limit — there is a separate, much higher combined cap.
From age 50 a catch-up contribution raises both limits. Roth IRA eligibility also phases out above an income threshold, which is why higher earners use the "backdoor" route of contributing to a traditional IRA and converting.
Because these figures change annually, check the current year's limits with the IRS rather than relying on any calculator's stored numbers.
The compounding underneath all of this is the same maths as the compound interest calculator. To see how much of your salary actually reaches your account after tax and deductions, use the take-home pay calculator.
Retirement Calculator — frequently asked questions
What does a 50% match up to 6% actually mean?
Contribute 6% of salary and your employer adds 3%. On $75,000 that is $2,250 a year of free money, and it is an instant 50% return on the matched portion before any investment growth.
Should I choose Roth or traditional?
It comes down to whether your tax rate is higher now or in retirement. If the rate is identical at both ends the two are mathematically equivalent — Roth then wins on the side benefits: no required distributions, and withdrawals that do not raise your taxable income.
How much do I need to retire?
The 4% rule says 25 times your annual retirement spending. For $60,000 a year that is $1.5 million — before counting Social Security, which usually covers a meaningful part of the gap.
What is a safe harbor match?
A plan design that exempts the employer from annual nondiscrimination testing in exchange for a guaranteed contribution. For you the practical benefit is that safe harbor contributions vest immediately, where a standard match often vests over three to six years.
Does the employer match count toward my contribution limit?
No. The match sits outside your personal 401(k) limit, under a separate and much higher combined cap. Limits change most years, so check the current figures with the IRS.
How much should I have saved by 40?
A common benchmark is three times salary by 40, six times by 50, and ten times by 67. Treat them as direction rather than verdict — median balances run well below these targets at every age.