Why contributing early matters so much
Retirement projections are compound interest played out over decades, so money contributed in your 20s and 30s has far longer to grow than money contributed in your 50s. This calculator lets you test that directly — try shifting the current age slider and watch how much the projected balance moves for the same monthly contribution.
A worked example
Starting at age 30 with $20,000 saved, contributing $500 a month plus a $200 employer match, at a 7% annual return, projects to roughly $1.49 million by age 65. Of that, only about $314,000 was actually contributed — the remaining $1.18 million is growth. At a 4% withdrawal rate, that supports about $4,970 a month in retirement income.
Frequently asked questions
What is the 4% withdrawal guideline?
It's a commonly cited rule of thumb suggesting that withdrawing about 4% of a retirement portfolio in the first year, then adjusting for inflation each year after, has historically had a strong chance of lasting 30 years without running out. It's a planning heuristic, not a guarantee — actual safe withdrawal rates depend on market conditions and how long retirement lasts.
Should I count my employer match separately?
Yes — it's free money on top of your own contribution, and including it gives a much more realistic growth projection. If you're not sure of your exact match, a conservative estimate is still more useful than leaving it out entirely.
What return rate is realistic to assume?
Long-run stock market averages are often cited in the 6-10% range before inflation, though a single year can swing sharply either direction. A diversified portfolio that shifts toward bonds closer to retirement typically assumes something lower than an all-stock portfolio.
Does this account for inflation or taxes on withdrawal?
No — the projected balance is in today's-dollars terms only if your return assumption is already inflation-adjusted (a 'real' return), and withdrawals from accounts like a traditional 401(k) are taxed as ordinary income, which isn't factored in here.
This calculator provides estimates for general informational purposes only and is not financial advice. Actual investment returns are not guaranteed and will vary — consult a licensed financial advisor for retirement planning specific to your situation.