401(K) Calculator Calculator

✖Starting Account Balance is the initial amount of money or assets present in an account at the beginning of a financial period, such as a month, quarter, or year.ⓘ Starting Account Balance [O]			+10% -10%
✖Rate of Interest per Annum refers to the annualized interest rate charged on a loan or investment over one year.ⓘ Rate of Interest per Annum [R]			+10% -10%
✖Frequency of Interest refers to how often interest is calculated and added to an account's balance.ⓘ Frequency of Interest [F]			+10% -10%
✖Number of Periods for 401(k) shall be made refers to the frequency with which contributions are made to the retirement account.ⓘ Number of Periods for 401(k) shall be made [npk]			+10% -10%
✖Fixed Amount Invested at Regular Intervals is an investment strategy that involves purchasing a fixed amount of a particular investment at regular intervals, regardless of the investment's price.ⓘ Fixed Amount Invested at Regular Intervals [FARI]			+10% -10%

✖401(K) Calculator is a tool to estimate the future value of a retirement savings account based on various factors such as contribution amount, contribution frequency, etc.ⓘ 401(K) Calculator [KCL]

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Formula

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401(K) Calculator

Formula

`"KCL" = "O"*(1+"R")^("F"*"npk")+("FARI")*((1+"R")^("F"*"npk"))-((1)/("R"))`

Example

`"24925.58"="100"*(1+"0.56")^("2"*"6")+("20")*((1+"0.56")^("2"*"6"))-((1)/("0.56"))`

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401(K) Calculator Solution

STEP 0: Pre-Calculation Summary

Formula Used

401(K) Calculator = Starting Account Balance*(1+Rate of Interest per Annum)^(Frequency of Interest*Number of Periods for 401(k) shall be made)+(Fixed Amount Invested at Regular Intervals)*((1+Rate of Interest per Annum)^(Frequency of Interest*Number of Periods for 401(k) shall be made))-((1)/(Rate of Interest per Annum))
KCL = O*(1+R)^(F*npk)+(FARI)*((1+R)^(F*npk))-((1)/(R))
This formula uses 6 Variables

Variables Used

401(K) Calculator - 401(K) Calculator is a tool to estimate the future value of a retirement savings account based on various factors such as contribution amount, contribution frequency, etc.
Starting Account Balance - Starting Account Balance is the initial amount of money or assets present in an account at the beginning of a financial period, such as a month, quarter, or year.
Rate of Interest per Annum - Rate of Interest per Annum refers to the annualized interest rate charged on a loan or investment over one year.
Frequency of Interest - Frequency of Interest refers to how often interest is calculated and added to an account's balance.
Number of Periods for 401(k) shall be made - Number of Periods for 401(k) shall be made refers to the frequency with which contributions are made to the retirement account.
Fixed Amount Invested at Regular Intervals - Fixed Amount Invested at Regular Intervals is an investment strategy that involves purchasing a fixed amount of a particular investment at regular intervals, regardless of the investment's price.

STEP 1: Convert Input(s) to Base Unit

Starting Account Balance: 100 --> No Conversion Required
Rate of Interest per Annum: 0.56 --> No Conversion Required
Frequency of Interest: 2 --> No Conversion Required
Number of Periods for 401(k) shall be made: 6 --> No Conversion Required
Fixed Amount Invested at Regular Intervals: 20 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

KCL = O*(1+R)^(F*npk)+(FARI)*((1+R)^(F*npk))-((1)/(R)) --> 100*(1+0.56)^(2*6)+(20)*((1+0.56)^(2*6))-((1)/(0.56))

Evaluating ... ...

KCL = 24925.5823502014

STEP 3: Convert Result to Output's Unit

24925.5823502014 --> No Conversion Required

FINAL ANSWER

24925.5823502014 ≈ 24925.58 <-- 401(K) Calculator

(Calculation completed in 00.004 seconds)

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Credits

Created by Aashna

IGNOU (IGNOU), India

Aashna has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 14 Investment Banking Calculators

401(K) Calculator

Go 401(K) Calculator = Starting Account Balance*(1+Rate of Interest per Annum)^(Frequency of Interest*Number of Periods for 401(k) shall be made)+(Fixed Amount Invested at Regular Intervals)*((1+Rate of Interest per Annum)^(Frequency of Interest*Number of Periods for 401(k) shall be made))-((1)/(Rate of Interest per Annum))

Roth IRA

Go Roth Ira = Amount Deposited*(1+Rate of Interest per Annum)^(Frequency of Interest Paid*Number of Periods)+Periodical Fixed Amount Invested*(((1+Rate of Interest per Annum)^(Frequency of Interest Paid*Number of Periods)-1)*(1+Rate of Interest per Annum))/(Rate of Interest per Annum)

Boat Loan

Go Boat Loan = (Amount Borrowed*Rate of Interest per Annum*(1+Rate of Interest per Annum)^(Number of Periods for a Loan Outstanding*Frequency wherein the loan amount will be repaid))/((1+Rate of Interest per Annum)^(Number of Periods for a Loan Outstanding*Frequency wherein the loan amount will be repaid)-1)

Balloon Mortgage

Go Balloon Mortgage = Present Value of Original Balance*(1+Rate of Interest per Annum)^Frequency of Payments-Payment*((1+Rate of Interest per Annum)^Frequency of Payments-1/Rate of Interest per Annum)

Adjustable Rate Mortgage

Go Adjustable Rate Mortgage = ((Loan Amount*Rate of Interest per Annum)*(1+Rate of Interest per Annum)^(Number of Periods))/((1+Rate of Interest per Annum)^(Number of Periods-1))

Auto Lease

Go Auto Lease = ((Capitalised Cost-Residual Value at End of Lease Term)/Term of Lease Period+(Capitalised Cost+Residual Value at End of Lease Term)*Money Factor)

College Savings

Go College Savings = College Amount Required/(((1+Rate of Interest per Annum)^(Number of Periods*Frequency of Interest Paid)-1)/(Rate of Interest per Annum))

Fixed Deposit

Go Fixed Deposit = Principal Amount*(1+Rate of Interest per Annum/Frequency of Interest Paid)^(Number of Periods*Frequency of Interest Paid)

Churn Rate for Customers

Go Churn Rate = (Total Number of Customers Lost During Period/Total Number of Customers at beginning of period)*100

Pension

Go Pension = Average Salary*Factor in Terms of Percentage*Number of Years Worked

Upfront Payment

Go Upfront Payment = Loan Amount*Upfront Percentage*Number of Points

Home Equity Loan

Go Home Equity Loan = Market Value of Property-Outstanding Principal Balance of Loan

Cost of Living

Go Cost of Living = Prices in Current Year/Prices in Base Year

Asset Allocation

Go Asset Allocation = 100-Age of the Individual

401(K) Calculator Formula

What do you mean by 401(K) Calculator ?

401(K) Calculator is a form of retirement savings plan with tax benefits that are mainly available through an employer. It is named after subsection 401(k) in the Internal Revenue Code, which was made possible by the Revenue Act of 1978. Self-directed 401(k)s exist for people who can't participate in employer-sponsored 401(k)s. Contributions to a 401(k) are made as pre-tax deductions during payroll and the dividends, interest, and capital gains of the 401(k) all benefit from tax deferment. This means that assets in a 401(k) grow tax-free and won't be taxed until a later point, usually during retirement. Employees, sometimes called plan participants, can contribute a certain percentage of their pre-tax salaries to their 401(k) plans. However, in addition to the annual limit set by the IRS, employers can set limits on the percentage of their paychecks that employees can contribute. In addition, as part of a 401(k) plan, employers can choose to match employee contributions.

How to Calculate 401(K) Calculator?

401(K) Calculator calculator uses 401(K) Calculator = Starting Account Balance*(1+Rate of Interest per Annum)^(Frequency of Interest*Number of Periods for 401(k) shall be made)+(Fixed Amount Invested at Regular Intervals)*((1+Rate of Interest per Annum)^(Frequency of Interest*Number of Periods for 401(k) shall be made))-((1)/(Rate of Interest per Annum)) to calculate the 401(K) Calculator, 401(K) Calculator is a type of retirement savings plan with tax concessions that are available through an employer. In this employers contribute to this retirement savings plan. 401(K) Calculator is denoted by KCL symbol.

How to calculate 401(K) Calculator using this online calculator? To use this online calculator for 401(K) Calculator, enter Starting Account Balance (O), Rate of Interest per Annum (R), Frequency of Interest (F), Number of Periods for 401(k) shall be made (npk) & Fixed Amount Invested at Regular Intervals (FARI) and hit the calculate button. Here is how the 401(K) Calculator calculation can be explained with given input values -> 24925.58 = 100*(1+0.56)^(2*6)+(20)*((1+0.56)^(2*6))-((1)/(0.56)).

FAQ

What is 401(K) Calculator?

401(K) Calculator is a type of retirement savings plan with tax concessions that are available through an employer. In this employers contribute to this retirement savings plan and is represented as KCL = O*(1+R)^(F*npk)+(FARI)*((1+R)^(F*npk))-((1)/(R)) or 401(K) Calculator = Starting Account Balance*(1+Rate of Interest per Annum)^(Frequency of Interest*Number of Periods for 401(k) shall be made)+(Fixed Amount Invested at Regular Intervals)*((1+Rate of Interest per Annum)^(Frequency of Interest*Number of Periods for 401(k) shall be made))-((1)/(Rate of Interest per Annum)). Starting Account Balance is the initial amount of money or assets present in an account at the beginning of a financial period, such as a month, quarter, or year, Rate of Interest per Annum refers to the annualized interest rate charged on a loan or investment over one year, Frequency of Interest refers to how often interest is calculated and added to an account's balance, Number of Periods for 401(k) shall be made refers to the frequency with which contributions are made to the retirement account & Fixed Amount Invested at Regular Intervals is an investment strategy that involves purchasing a fixed amount of a particular investment at regular intervals, regardless of the investment's price.

How to calculate 401(K) Calculator?

401(K) Calculator is a type of retirement savings plan with tax concessions that are available through an employer. In this employers contribute to this retirement savings plan is calculated using 401(K) Calculator = Starting Account Balance*(1+Rate of Interest per Annum)^(Frequency of Interest*Number of Periods for 401(k) shall be made)+(Fixed Amount Invested at Regular Intervals)*((1+Rate of Interest per Annum)^(Frequency of Interest*Number of Periods for 401(k) shall be made))-((1)/(Rate of Interest per Annum)). To calculate 401(K) Calculator, you need Starting Account Balance (O), Rate of Interest per Annum (R), Frequency of Interest (F), Number of Periods for 401(k) shall be made (npk) & Fixed Amount Invested at Regular Intervals (FARI). With our tool, you need to enter the respective value for Starting Account Balance, Rate of Interest per Annum, Frequency of Interest, Number of Periods for 401(k) shall be made & Fixed Amount Invested at Regular Intervals and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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