457(b) Calculator: Project a Government and Nonprofit Retirement Balance

Project how a 457(b) plan could grow — the deferred compensation plan available to state and local government employees and some nonprofit workers.

✓ Editorially reviewed Updated May 17, 2026 By Ugo Candido
Investment Details
$
What the 457(b) holds today.
Default sourced from S&P Dow Jones Indices (as of December 31, 2025).
$
Your estimate $—

Adjust the inputs and select Calculate for a full breakdown.

Compare Common Scenarios

How the numbers shift across typical situations for this calculator:

ScenarioFuture valueTotal contributionsTotal interest earned
$30k · $700/mo · 7% · 25yr$738,812.73$240,000.00$498,812.73
$0 · $500/mo · 8% · 30yr$745,179.72$180,000.00$565,179.72
$120k · $1.2k/mo · 6% · 15yr$643,473.68$336,000.00$307,473.68
$10k · $300/mo · 7% · 35yr$655,377.90$136,000.00$519,377.90

How This Calculator Works

Enter the current 457(b) balance, the expected annual return, the years until retirement, and the monthly contribution. The calculator compounds monthly and shows the projected balance plus the share built by investment growth.

The Formula

Future Value with Regular Contributions

FV = P(1 + r)^n + PMT · ((1 + r)^n − 1) / r

P = starting amount, PMT = monthly contribution, r = monthly rate (annual ÷ 12), n = number of months

Worked Example

With $30,000 saved, $700 added monthly, and a 7% return over 25 years, a 457(b) reaches about $738,800. Contributions account for $240,000; investment growth supplies the remaining $498,800.

Key Insight

The 457(b)'s underrated advantage is the lack of a 10% early-withdrawal penalty after separation from service — at any age. Government employees who retire early (police, fire, teachers retiring at 50 or 55) can draw on a 457(b) without the penalty that hits 401(k) and IRA withdrawals before 59½. The same dollar locked in a 401(k) is much less flexible at early-retirement age.

Frequently Asked Questions

What is a 457(b)?

A deferred compensation plan for state and local government employees and certain nonprofit workers. It works similarly to a 401(k) — pre-tax contributions, tax-deferred growth, taxed on withdrawal — with some distinctive features that favor early retirees.

How is a 457(b) different from a 401(k)?

The biggest difference: no 10% early-withdrawal penalty after separation from service, at any age. The 457(b) was designed around government workers who often retire in their 50s after long service.

Can I contribute to both a 457(b) and a 403(b)?

Yes — and the limits stack. Public school teachers and some healthcare workers eligible for both can effectively double their tax-deferred savings limit by maxing out each plan separately.

What is a Roth 457(b)?

Some 457(b) plans offer a Roth bucket — contributions are taxed now, growth and qualified withdrawals are tax-free. Useful for younger employees who expect higher tax brackets later.

Are catch-up contributions allowed?

Yes — standard age-50 catch-up applies. The 457(b) also offers a special 'last three years before retirement' catch-up that can double the limit, useful for employees who under-saved earlier in their career.

Related Calculators

Data Sources & Benchmarks

This calculator draws on 2 independent, dated sources. The starting values for expected annual return are taken from the benchmarks below and refresh whenever the snapshots are updated.

10.30% Provisional
S&P 500 long-run annual return
S&P 500 Index — Long-Run Annualized Total Return
S&P Dow Jones Indices · as of December 31, 2025
View source ↗
4.31% Provisional
10-year U.S. Treasury yield
Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity (DGS10)
Board of Governors of the Federal Reserve System (FRED) · as of May 15, 2026
View source ↗

Methodology & Review

Ugo Candido ✓ Editor
Wrote this calculator and is responsible for its methodology and review.

The projection compounds the balance monthly at a constant expected return and adds a fixed monthly contribution. It assumes contributions stay within 457(b) limits and excludes fees and tax. The 457(b)'s key feature — no early-withdrawal penalty after separation from service — is not modeled directly but matters for planning.

Written by Ugo Candido · Last updated May 17, 2026.