What is a good rate of return to assume for a 401(k)?

Many planners use 6% to 8% for a diversified, long-term 401(k) portfolio. A 7% assumption is a common, reasonable middle ground, though actual returns vary with the market and your investment choices.

401K Growth Calculator

Retirement Planning

401(k) Growth Calculator

Project your 401(k) balance at retirement, including your contributions, employer match and compound growth.

Estimated balance at retirement

In 35 years, growing tax-deferred.

Your contributions $0
Employer match $0
Investment growth $0
Starting balance $0

Estimates use annual compounding and assume contributions continue every year until retirement. Actual results vary with markets, contribution limits and plan rules. For guidance only, not financial advice.

Guide

What Is a 401(k) Growth Calculator?

A 401(k) growth calculator is a free retirement planning tool that estimates how much your 401(k) will be worth by the time you retire. It combines four powerful forces — your own contributions, your employer match, annual salary increases and compound investment growth — to project your future balance in seconds. Instead of guessing whether you are saving enough, you get a clear, data-driven number you can plan around.

ProfitValue’s 401(k) calculator lets you adjust your contribution percentage, expected rate of return and retirement age so you can instantly see how small changes today can translate into hundreds of thousands of dollars at retirement.

How the 401(k) Growth Calculator Works

The calculator projects your balance year by year until your chosen retirement age using this simple logic:

Your contribution

Each year it sets aside your chosen percentage of salary as your 401(k) contribution.

Employer match

It adds the matching amount your employer pays — free money — up to your plan’s limit.

Compound growth

Your entire balance grows at the expected annual return, then compounds again the next year.

Salary increases

Your salary rises each year, so your contributions automatically grow with it.

Key Benefits of Using a 401(k) Calculator

See the power of compounding

Visualize how decades of tax-deferred compounding can turn modest monthly savings into a seven-figure nest egg.

Never leave match on the table

Instantly see how much your employer match adds, so you contribute enough to capture every dollar you’re owed.

Test different scenarios

Compare retiring at 60 vs 67, or saving 6% vs 10%, and watch the impact on your final balance in real time.

Set realistic goals

Know whether you are on track for the retirement you want — and exactly how much more to save if you’re not.

Who Should Use This Calculator?

New employees deciding how much of their paycheck to contribute.
Mid-career professionals checking if their retirement savings are on track.
Anyone offered an employer match who wants to maximize free contributions.
Business owners and HR teams illustrating plan value to their staff.
Career changers weighing how a new salary affects long-term savings.

Tips to Maximize Your 401(k) Growth

Contribute at least enough to earn your full employer match — it’s an instant, guaranteed return.
Increase your contribution rate by 1% each year, ideally when you get a raise.
Start early: an extra 10 years of compounding often matters more than a higher salary.
Keep investment fees low so more of your return stays in your account.
Review your projection annually and adjust as your income grows.

Key 401(k) Terms Explained

Contribution: The percentage of your salary you set aside into your 401(k) each pay period, before tax in a traditional plan.
Employer match: Money your employer adds to your account based on what you contribute, up to a set limit — effectively free retirement savings.
Rate of return: The average annual growth of your investments. The long-run U.S. stock market average is often cited near 7% after inflation.
Tax-deferred growth: You pay no tax on gains while the money stays invested, letting your balance compound faster.
Vesting: The schedule that determines when employer-matched funds fully belong to you.

Frequently Asked Questions

How much will my 401(k) be worth at retirement?

It depends on your contribution rate, employer match, years until retirement and rate of return. Enter your details above and the calculator instantly projects your estimated balance at retirement, split into contributions, match and investment growth.

Is the employer match really free money?

Yes. An employer match is extra money added to your account at no cost to you, as long as you contribute enough to qualify. Not contributing enough to earn the full match means leaving guaranteed returns on the table.

What is a good rate of return to assume?

Many planners use 6%–8% for a diversified, long-term 401(k) portfolio. A 7% assumption is a common, reasonable middle ground, but your actual return will vary with the market and your investment choices.

How much should I contribute to my 401(k)?

At minimum, contribute enough to capture your full employer match. Many experts suggest aiming for 10%–15% of your salary, including the match, to stay on track for a comfortable retirement.

Does this calculator account for taxes and inflation?

The projection shows pre-tax, tax-deferred growth. It does not deduct future taxes or adjust for inflation, so treat the result as today’s estimate of your gross balance. Consult a financial professional for a personalized, after-tax plan.

Ready to grow your retirement savings?

Explore ProfitValue’s free tools and expert guides to plan smarter and keep more of your money.

Explore More Tools

This calculator and article are for general educational purposes only and do not constitute financial, tax or investment advice. Consult a qualified professional before making retirement decisions.