Based on your inputs, your projected 401(k) balance at retirement is:
$0.00
Understanding Your 401(k) Retirement Projections
This 401(k) Retirement Savings Calculator helps you estimate the future value of your retirement nest egg.
By inputting your current age, desired retirement age, current savings, annual contributions, and an assumed rate of return,
you can get a projection of how much your 401(k) might grow over time. This tool is a valuable way to visualize
your progress towards your retirement goals and understand the impact of consistent saving and compound growth.
How the Calculation Works:
The calculator uses a future value formula that considers the initial balance, regular contributions, and compound interest over time.
The core of the calculation involves projecting the growth of your current balance and the future value of your annual contributions separately,
then summing them up.
Initial Balance Growth: Your current 401(k) balance grows each year based on the assumed annual rate of return.
Future Value of Contributions: Each annual contribution also grows with compound interest until your retirement age.
Rate is the annual rate of return (expressed as a decimal, e.g., 7% is 0.07).
Years is the number of years until retirement (Retirement Age – Current Age).
Note: This is a simplified model. It does not account for taxes, inflation, changes in contribution amounts, potential fees, or market volatility,
which can all impact actual retirement savings. It's recommended to consult with a financial advisor for personalized retirement planning.
Key Inputs Explained:
Current Age (years): Your current age. This helps determine the investment horizon.
Desired Retirement Age (years): The age at which you plan to retire. The longer your time horizon, the more significant the impact of compounding.
Current 401(k) Balance: The total amount currently saved in your 401(k) accounts.
Annual Contribution: The total amount you and your employer contribute to your 401(k) annually. This includes your employee contributions and any employer match.
Assumed Annual Rate of Return (%): The average annual percentage growth you expect your investments to achieve. This is an estimate; actual returns can vary significantly. It's common to use historical market averages (e.g., 7-10% for stocks) but adjust based on your risk tolerance and asset allocation.
Why Use This Calculator?
Goal Setting: Helps set realistic savings targets.
Motivation: Visualizing potential growth can be a powerful motivator to save more.
Scenario Planning: Allows you to see how changes in contributions or return rates might affect your retirement outcome.
Financial Literacy: Educates users on the power of compound interest and long-term investing.
function calculateRetirementSavings() {
var currentAge = parseFloat(document.getElementById("currentAge").value);
var retirementAge = parseFloat(document.getElementById("retirementAge").value);
var current401kBalance = parseFloat(document.getElementById("current401kBalance").value);
var annualContribution = parseFloat(document.getElementById("annualContribution").value);
var annualReturnRate = parseFloat(document.getElementById("annualReturnRate").value);
var resultElement = document.getElementById("projectedBalance");
resultElement.textContent = "$0.00"; // Reset to default
// Validate inputs
if (isNaN(currentAge) || isNaN(retirementAge) || isNaN(current401kBalance) || isNaN(annualContribution) || isNaN(annualReturnRate)) {
alert("Please enter valid numbers for all fields.");
return;
}
if (retirementAge <= currentAge) {
alert("Desired retirement age must be greater than current age.");
return;
}
if (currentAge < 0 || retirementAge < 0 || current401kBalance < 0 || annualContribution < 0 || annualReturnRate 0) {
futureValueOfContributions = annualContribution * (Math.pow(1 + rateDecimal, yearsToRetirement) – 1) / rateDecimal;
} else { // Handle zero interest rate case
futureValueOfContributions = annualContribution * yearsToRetirement;
}
var totalProjectedBalance = futureValueOfCurrentBalance + futureValueOfContributions;
// Format the result to two decimal places with commas
var formattedBalance = totalProjectedBalance.toFixed(2);
var parts = formattedBalance.split('.');
parts[0] = parts[0].replace(/\B(?=(\d{3})+(?!\d))/g, ",");
resultElement.textContent = "$" + parts.join('.');
}