401(k) Calculator
Enter the starting balance, monthly contribution, annual return and years to retirement to estimate the compounded value, total contributed and gains of a 401(k) account.
Input Data
Results
At a glance:A 401(k) grows from a starting balance plus monthly contributions, compounded. Future value = initial balance grown + monthly contribution annuity; total contributed = initial + monthly × 12 × years; gains = future value − total contributed. Hong Kong's MPF is a similar defined-contribution scheme with statutory 5%+5% contributions.
Formula
Future value = initial × (1+r)^(years) + monthly × ((1+r/12)^(12×years) − 1) ÷ (r/12).
Total contributed = initial + monthly × 12 × years.
Gains = future value − total contributed.
$$FV = P(1+i)^n + PMT\cdot\dfrac{(1+i)^n-1}{i}$$$$i = \dfrac{r}{12},\quad n = \text{years}\times 12$$$$\text{Interest} = FV - \left(P + PMT\times n\right)$$How to Use
- Enter the starting balance.
- Enter the monthly contribution, annual return and years.
- Read the retirement value, total contributed and gains.
FAQ
Hong Kong has no 401(k) — how is this calculator useful to me?
The 401(k)'s math (regular contributions + compounding) is identical to Hong Kong's MPF, ORSO occupational schemes and Tax-Deductible Voluntary Contributions (TVC). Just enter your MPF contribution (or plus voluntary contributions) as the monthly contribution to estimate the long-term value of your retirement account for planning.
How much monthly contribution is reasonable?
Hong Kong's MPF statutory contribution is employee 5% + employer 5%, capped at HK$1,500 each per month (HK$3,000 combined). To accumulate faster, add voluntary contributions or TVC. The default HK$3,000 corresponds to the fully matched employee-plus-employer scenario.
What annual return should I assume?
It depends on your fund choice. Global equity funds have historically returned about 6%–8% annualised long term, balanced funds about 4%–6%, and conservative guaranteed or money-market funds perhaps 1%–3%. Run both a conservative and an optimistic figure to see how the return assumption moves the result.
Does the calculator account for inflation and management fees?
No. The result is a nominal amount, not net of inflation or fund fees. For real purchasing power, subtract about 2%–3% inflation from the return as a 'real return' and recompute; MPF fund expense ratios (FER) of about 0.5%–2% can also be deducted from the return before estimating.
When can the retirement account money be withdrawn?
A US 401(k) is generally withdrawable after age 59½, with penalties for early withdrawal. Hong Kong's MPF is generally withdrawn at age 65, or earlier only on statutory grounds (early retirement, permanent departure from HK, total loss of capacity). This calculator estimates only the accumulation-phase value; for the drawdown phase see our RMD calculator.
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References
This calculator's content is reviewed by our Licensed Financial Planning team. Results are for reference only; please refer to the relevant authorities for the official figures.