A 401(k) Calculator

Start New Financial shows you how to best calculate your retirement earnings with our 401(k) calculator. Call us TODAY so we can help you become debt free.

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Start New Financial?s 401(k) calculator factors in your expected age of retirement, employer matching funds, your contributions, and the growth of your assets and investments to estimate what your 401(k) balance will be at your retirement.

Tax-deferred

All earnings and contributions to your 401(k) are tax-deferred. Only when the money is withdrawn do you pay taxes on earnings and contributions. Additionally, many employers can choose to provide up to matching contributions to your 401(k).

Supplemental

One of the best tools for creating a secure retirement is a 401(k) plan. It?s a great ?supplemental pension?! Your 401(k) savings calculator also displays charts that depict the savings break-up and accumulated savings until your retirement.

Debt Relief

Debt relief is any strategy that allows you to gain control of what had been overwhelming, unmanageable debt to you and you can now manage your debt in a way where you can function normally and keep up with your living expenses and bills.

Calculate your retirement earnings and more

Planning only for the best-case scenario is the worst mistake a retiree can make. The accuracy component of the retirement calculator is very important to the reliability of the results being displayed. You can be left at risk of falling short of your retirement goals when you only plan for the best-case scenario. But in this case, it is very difficult to account for worst case scenarios without being a psychic. The best way to be accurate in these calculations is to be versatile and customize the data in a way that matches your situation, taking into account everything you can think of, such as inputs for Social Security, pensions, inflation, advanced expense scheduling, differing retirement dates between spouses, and more. The reason a versatile calculator is more accurate is because it is capturing more data points and minimizing the risk of a simplified output relying on inaccurate data. One of the best tools for creating a secure retirement is a 401(k) plan. All contributions into a 401(k) are tax-deferred, meaning that you don?t pay taxes on money being saved for retirement. The only time you pay taxes on earnings and contributions is when the money is drawn from the account. Also, your employer will match your contributions to a 401(k) anywhere from 0% to 100%. This makes an attracting retirement saving account you would not want to miss.

Ease of use of your retirement calculator and visual appeal are very important. A tool that is hard to read is even harder to understand. Tools that utilize graphs in addition to numbers can be helpful, as visually seeing how the money comes and goes is easier for most people to understand. Another key component to usability is the ability to easily modify inputs. A tool that allows for modification on the results page is especially useful because it prevents users from having to restart the entire process if they make a mistake or want to run an alternative plan. Also, having the option to save is always beneficial because you may underestimate the time needed to complete the process, or may need time to gather the right information.?

Use Start New Financial?s 401(k) Retirement Calculator below so you can know what your retirement funds will look like:

401 (k) Employee Savings Plan:

Percent to Contribute

Percent to contribute

X

This is the percentage of your annual salary you contribute to your 401(k) plan each year. Most employers permit employees to contribute up to 100% of their salary to a 401(k).

Annual Salary

Annual Salary

X

This is your annual salary from your employer before taxes and other benefit deductions. Since your contribution and company match are based on the salary paid to you by your employer, do not include any income you may receive from sources other than your employer.

Annual salary increase

Annual salary increase

X

The annual percentage you expect your salary to increase. We assume that your salary will continue to increase at this rate until you retire.

Current age

Current age

X

Your current age

Age of retirement

Age of retirement

X

Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your 401(k). So if you retire at age 65, your last contribution occurs when you are actually 64.

Current 401(k) balance

Current 401(k) balance

X

The starting balance or current amount you have invested or saved in your 401(k)

Annual rate of return:

Annual rate of return:

X

The annual rate of return for your 401(k) account. This calculator assumes that your return is compounded annually and your deposits are made monthly. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500? (S&P 500?) for the 10 years ending December 31st 2016, had an annual compounded rate of return of 6.6%, including reinvestment of dividends. From January 1, 1970 to December 31st 2016, the average annual compounded rate of return for the S&P 500?, including reinvestment of dividends, was approximately 10.3% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that Separate Account investment funds and/or investment companies may charge.

Total Employee contributions

401 (k) Employer Match

Employer match

Employer match

X

An employer match is in addition to your annual contributions. It is based on a percentage of your annual contributions. This range can be anywhere from 0% to 100%.

For example, let's assume the employer matches 50% of the employee's contributions up to 6% of their salary. The employee earns $100,000 per year and contributes 10%. The results would be:

  • $10,000 from the employee
  • $3,000 from the employer (which is 50% of $6,000 or 6% of the annual salary)
  • Total: $13,000


Please read the definition for "Employer maximum" for a detailed description of maximum employer matching contributions. It is also important to note employer contributions do not affect the maximum amount allowed to be contributed by an employee. Matching contributions can be subject to a vesting schedule. See your plan information for details.

Employer match ends

Employer match ends

X

This is the maximum percent of your salary matched by your employer regardless of the amount you decide to contribute. For example, let's assume your employer has a 50% match, up to a maximum of 6% of your annual salary. If you have an annual salary of $25,000 and contribute 6%, your annual contribution is $1,500. With a 50% match, your employer will add another $750 to your 401(k) account. If you increase your contribution to 10%, your annual contribution is $2,500 per year. Your employer match, however, is limited to the first 6% of your salary and remains at $750.

Total employer contributions :

Total Return In 30 Years

Total Return

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It?s important for you to estimate now how much you will need per year to maintain your desired lifestyle in retirement, because any necessary adjustments and preparations must be done now since it?d be too late to do so in retirement.

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Disclaimer: Interactive and information calculators are not intended to provide investment advice and are only made available to you as self-help tools for your independent use. In regards to your individual circumstances, Start New Financial does not and cannot guarantee their accuracy or applicability. All examples are for illustrative purposes and are strictly hypothetical. Regarding all your personal finance and legal issues, we encourage you to seek personalized advice from qualified licensed professionals because everyone has their own unique circumstances.