457(b) Calculator

Use this calculator to project a 457(b) retirement balance and contribution percentage by retirement age.

What this calculator does

The 457(b) calculator estimates how current balance and annual contributions may grow over time. It also shows the annual contribution as a percentage of salary.

It uses:

• current age and retirement age
• current 457(b) balance
• annual salary and contribution
• expected annual return

457(b) Formula

FV = P(1 + r)^n + PMT × (((1 + r)^n - 1) / r)

Where:

• P = current 457(b) balance
• PMT = annual contribution
• r = expected annual return
• n = years until retirement

Example calculation

If:

• Current balance = 40,000
• Annual contribution = 15,000
• Salary = 100,000
• Expected return = 7%

Then:

• Contribution percentage = 15%
• Current balance compounds
• Annual additions compound
• Final value depends on years to retirement

The 457(b) balance grows from ongoing contributions and return.

What is a 457(b)?

A 457(b) is a deferred compensation retirement plan often available to state and local government employees and some non-profit workers. It has rules that differ from 401(k) and 403(b) plans.

Why 457(b) planning matters

• estimates deferred compensation growth
• helps set annual contribution levels
• supports public-sector retirement planning
• can complement other accounts

When to use this calculator

• projecting a 457(b) balance
• checking contribution rate
• planning public-sector retirement
• comparing workplace accounts

Common mistakes

• confusing 457(b) and 403(b) limits
• ignoring plan-specific rules
• assuming employer contributions apply
• overlooking withdrawal rules

457(b) vs 403(b)

A 457(b) is deferred compensation. A 403(b) is a retirement plan common in schools and non-profits.

Some workers may have access to both.

FAQs

What is a 457(b)?

A 457(b) is a deferred compensation retirement plan for certain government and non-profit employees.

How do you calculate 457(b) growth?

Project current balance and annual contributions forward with expected compound return.

What is a good 457(b) contribution?

A good contribution fits your budget and retirement target while staying within plan limits.

What is the difference between 457(b) and 403(b)?

They are separate workplace plans with different rules and eligibility.