403(b) Calculator

1. Enter your current 403(b) balance. New employees often start at $0.
2. Set your salary and contribution percentage. Most financial advisors recommend 10-15% of salary into retirement, including any employer match.
3. Configure the employer match. Common structures: 100% match up to 5%, 50% match up to 6%, or 100% match up to 3% + 50% match on the next 2%. Read your benefits handbook for your specific formula.
4. Set expected annual return. 7% is a reasonable long-term assumption for a diversified portfolio. Conservative: 5%. Aggressive: 9%. The S&P 500 has averaged ~10% nominal / ~7% real (inflation-adjusted) over 50+ years.
5. Read your projected balance at retirement. The table below shows the year-by-year breakdown.

403(b) growth uses the same compound interest math as a 401(k) but with rules specific to nonprofit and education employees. Each year:

Employee Contribution = Salary × Contribution %
Employer Match = Salary × Match %  (capped at limit)
Yearly Balance = (Previous Balance + Total Contributions) × (1 + Return)
Salary Next Year = Current Salary × (1 + Salary Growth)

Example: $70,000 salary, 10% contribution, 5% employer match, 7% annual return, 30 years.

• You contribute: $7,000/year (rising with salary) — about $330,000 over 30 years
• Employer matches: $3,500/year (rising with salary) — about $165,000 over 30 years
• Investment earnings: ~$870,000
• Final balance: ~$1.36 million

403(b) plans are the retirement account for employees of public schools, universities, hospitals, churches, and certain nonprofits. They're structurally similar to 401(k)s with three meaningful differences worth understanding.

Three things to watch in your 403(b):

• Investment fees. Old-style 403(b) plans were dominated by annuity contracts with 1.5-2.5% annual fees. A 1.5% fee over 30 years cuts your final balance by roughly 30%. If your plan offers a low-cost mutual fund or index fund option, use it.
• The 15-year service rule. If you've been with the same employer for 15+ years and have an average annual contribution below $5,000, you can contribute an extra $3,000/year (lifetime $15,000) on top of normal limits. Many people don't know this exists.
• Vesting schedules. Some 403(b) employer matches vest immediately; others vest over 3-5 years. Leaving before vesting forfeits the match. Check your plan document.