How it works
Each year you and your employer add a share of your salary, and the whole balance grows at the return you choose. The match only applies up to the amount you contribute.
Formula
Balanceₙ₊₁ = Balanceₙ × (1 + r) + salary × (your % + match %)
Example
Age 30 to 65, $70,000 salary, 8% + 4% match, $15,000 start, 7% return, 2% raises: about $1.6 million.
Assumptions & limitations
- Contributions and match added once per year.
- Constant return and raise rate.
- Ignores IRS contribution limits, fees and taxes.
Frequently asked questions
Does this include contribution limits?
No. The IRS caps yearly employee contributions; check the current limit if you contribute a lot.
Is the result in today's dollars?
No, it's in future dollars. Use the inflation calculator to see today's buying power.