Future Value: $0
Based on your inputs and assumptions.
Understanding Your Fidelity 401(k) Savings Growth
Saving for retirement is one of the most crucial financial goals, and a 401(k) plan offered by employers like Fidelity is a powerful tool to achieve it. This calculator helps you project the potential future value of your 401(k) savings based on your current balance, ongoing contributions, and an assumed rate of return over a specified period.
How the Calculation Works
The future value of your 401(k) is calculated using the principle of compound interest. Each year, your contributions, current balance, and the earnings from previous years grow. The formula used is a variation of the future value of an annuity due combined with the future value of a lump sum.
For each year, the calculation compounds the previous year's balance with the new contributions and the expected rate of return. A simplified representation of the year-end balance would be:
The calculator iterates this process for the number of years you specify until retirement.
Key Inputs Explained:
Current 401(k) Balance: This is the total amount you already have saved in your 401(k) account.
Annual Contribution: The total amount you plan to contribute to your 401(k) each year. This includes your own contributions and any employer match you might receive.
Assumed Annual Return Rate: This is the average annual percentage growth you expect your investments to achieve over time. This is an assumption and actual returns can vary significantly. It's often recommended to use a conservative estimate for planning.
Years to Retirement: The number of years remaining until you plan to retire.
Why Use This Calculator?
Retirement Planning: Get a realistic estimate of how much your 401(k) could be worth at retirement.
Contribution Adjustments: See how increasing your annual contributions or achieving a higher rate of return can impact your final nest egg.
Goal Setting: Use the projections to set more informed retirement savings goals.
Disclaimer: This calculator provides an estimate for educational purposes only. It does not constitute financial advice. Investment returns are not guaranteed, and actual results may vary. Consult with a qualified financial advisor for personalized retirement planning.
function calculate401k() {
var currentSavings = parseFloat(document.getElementById("currentSavings").value);
var annualContribution = parseFloat(document.getElementById("annualContribution").value);
var annualReturnRate = parseFloat(document.getElementById("annualReturnRate").value) / 100; // Convert percentage to decimal
var yearsToRetirement = parseInt(document.getElementById("yearsToRetirement").value);
var resultDiv = document.getElementById("result");
// Validate inputs
if (isNaN(currentSavings) || currentSavings < 0 ||
isNaN(annualContribution) || annualContribution < 0 ||
isNaN(annualReturnRate) || annualReturnRate < -1 || // Allow for potential negative returns, though usually rates are positive
isNaN(yearsToRetirement) || yearsToRetirement <= 0) {
resultDiv.innerHTML = "Please enter valid numbers for all fields.";
return;
}
var futureValue = currentSavings;
for (var i = 0; i < yearsToRetirement; i++) {
futureValue = (futureValue * (1 + annualReturnRate)) + annualContribution;
}
// Format the result to two decimal places and add commas for thousands
var formattedFutureValue = "$" + futureValue.toFixed(2).replace(/\B(?=(\d{3})+(?!\d))/g, ",");
resultDiv.innerHTML = "Future Value: " + formattedFutureValue +
"Based on your inputs and assumptions.";
}