How 401(k) Plans Work

401(k) Value Calculator

401(k) Value Calculator

This calculator helps you to understand how much money you can accumulate by making monthly contributions to your 401(k) account. Enter the amount you plan to add to your account each month, and the expected interest rate. The calculator will show you the amount that will accumulate in the account over different time spans.

Enter your current annual salary.
Percentage contribution
Enter a percentage between 1% and 15% that represents the percentage of your income that you wish to withhold into your 401(k) account. The withholding may not exceed 15%. Also, you cannot contribute more than $11,000 to your 401(k) account in any year (2002 limit), so adjust this percentage to make sure that the total annual withholding does not exceed $11,000.
Interest rate
Enter the interest rate you expect to earn. To give you two ideas, current (2002) 5-yr CD rates run between 4.5% and 5%, while the stock market has returned an average of 10% or so for many years. For 6%, enter 6 in the entry field.
Click this button to calculate the account value.
Yearly withholding
This is the amount that will be withheld from your salary each year. This number cannot exceed $11,000 (for 2002).
Monthly withholding
This is the yearly withholding divided by 12.
Year Total Value
At the end of 1 year
At the end of 2 years
At the end of 3 years
At the end of 4 years
At the end of 5 years
At the end of 10 years
At the end of 15 years
At the end of 20 years
At the end of 30 years
At the end of 40 years

It is particularly interesting to note the massive difference between the 30 and 40 year numbers. Getting started at age 25 rather than 35 can have a BIG impact!

Calculators courtesy of BYG Publishing, Inc.

More to Explore