Retirement / 401(k) Calculator

A common guideline is to save 15% of your gross income annually, including any employer match. The exact amount depends on your desired retirement lifestyle, expected expenses, and how long you expect to live in retirement.

The 4% rule suggests you can safely withdraw 4% of your retirement savings each year without running out of money over a 30-year retirement. For example, with $1,000,000 saved, you could withdraw $40,000 per year.

The earlier the better. Starting at 25 gives your money decades to compound. Even small contributions in your 20s can outpace much larger contributions started in your 40s due to the power of compound growth.

An employer match is free money added to your 401(k) or similar retirement account. For example, if your employer matches 50% of contributions up to 6% of your salary, and you earn $60,000, contributing $3,600 (6%) gets you an additional $1,800 from your employer.

A 401(k) is an employer-sponsored plan with higher contribution limits ($23,500 in 2025) and possible employer matching. An IRA (Individual Retirement Account) is opened independently with lower limits ($7,000 in 2025) but more investment options.

Historically, a diversified stock portfolio has returned about 7–10% annually before inflation. For planning, many advisors use 6–7% as a conservative long-term average to account for market fluctuations and inflation.