401(k) Calculator

Project your 401(k) growth with employer matching and see your retirement income potential.

401(k) Calculator — Retirement Savings Projections

Maximize your 401(k) growth with our free calculator. See how employer matching, contribution rates, and returns compound into your retirement nest egg. Instant projections.

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Your Details

Quick Presets

Current Age30

1865

Retirement Age65

3175

Current Balance

Annual Salary

Your Contribution6%

1%25%

Employer Match50%

0%100%

Match Limit6%

0%10%

Expected Return7%

1%15%

Salary Growth2%

0%5%

Projected Balance

$1,413,497

Your Contributions

$224,975

Employer Contributions

$112,488

Investment Growth

$1,061,034

Monthly Retirement Income

$4,712

How It Works

The 401(k) calculator projects the growth of your 401(k) retirement account over time, factoring in your contributions, employer matching, investment returns, and salary growth. The calculator shows you how much your account could be worth at retirement and estimates your potential monthly retirement income using the 4% withdrawal rule. It helps you understand the powerful impact of employer matching — essentially free money that can significantly boost your retirement savings. By adjusting your contribution rate and seeing the projected outcomes, you can make informed decisions about how much to save.

Formula

Balance = (Previous Balance + Employee Contribution + Employer Match) × (1 + Return Rate)

Each year, your balance grows by your contribution (a percentage of your salary), your employer's matching contribution (typically 50-100% of your contribution up to a limit), and investment returns. Salary growth increases your contributions over time, creating an accelerating savings effect.

Key Concepts

Employer Match

Many employers match a percentage of your 401(k) contributions. A common structure is 50% match up to 6% of salary. If you earn $80,000 and contribute 6% ($4,800), your employer adds $2,400 — an instant 50% return on your contribution.

Vesting Schedule

Some employer matches vest over time (e.g., 20% per year over 5 years). You only keep the vested portion if you leave the company before being fully vested.

Contribution Limits

The IRS sets annual 401(k) contribution limits. For 2026, the limit is $23,500 for those under 50, and $31,000 for those 50 and older (catch-up contributions).

Tax-Deferred Growth

Traditional 401(k) contributions reduce your taxable income today, and your investments grow tax-free until withdrawal in retirement. This tax deferral can significantly accelerate wealth accumulation compared to taxable accounts.

Pro Tips

At minimum, contribute enough to get the full employer match — not doing so is leaving free money on the table.
Increase your contribution by 1% each year — you'll barely notice the difference in your paycheck but it adds up enormously over time.
Choose low-cost index funds within your 401(k) — high expense ratios can eat 25-30% of your potential wealth over 30 years.
Consider a Roth 401(k) if your plan offers one — you pay taxes now but all growth and withdrawals in retirement are tax-free.
Don't cash out your 401(k) when changing jobs — roll it into an IRA or your new employer's plan to avoid taxes and penalties.

Real-World Example

David is 30, earns $75,000/year, has $15,000 in his 401(k), contributes 8% of salary, and his employer matches 50% up to 6%.

1Annual salary: $75,000 (growing 2%/year)

2Employee contribution: 8% = $6,000/year

3Employer match: 50% of first 6% = $2,250/year

4Total annual contribution: $8,250

5Expected return: 7%

6Years to retirement (age 65): 35 years

Result: By age 65, David's 401(k) is projected to grow to approximately $1,420,000. Of that, $280,000 came from his contributions, $105,000 from employer matching, and $1,020,000 from investment growth. This could provide about $4,730/month in retirement income using the 4% rule.

Fact-Checked — All content is reviewed for accuracy against authoritative sources including IRS.gov, Federal Reserve data, and established financial research.

Frequently Asked Questions

Employer matching means your company contributes additional money to your 401(k) based on how much you contribute. A common formula is 50% match up to 6% of your salary — meaning if you contribute 6%, your employer adds another 3%. This is essentially free money and provides an immediate 50% return on your contribution before any investment gains.

For 2026, you can contribute up to $23,500 to your 401(k) if you're under 50. If you're 50 or older, you can make an additional $7,500 in catch-up contributions for a total of $31,000. These limits apply to your employee contributions only — employer matching contributions don't count toward your limit.

Traditional 401(k) contributions are pre-tax — they reduce your taxable income now, but you pay taxes on withdrawals in retirement. Roth 401(k) contributions are after-tax — you pay taxes now, but all growth and withdrawals in retirement are tax-free. Choose Roth if you expect to be in a higher tax bracket in retirement, and traditional if you expect a lower bracket.

You have several options: leave it with your former employer (if allowed), roll it into your new employer's 401(k), roll it into an IRA (often the best choice for more investment options), or cash it out (worst option — you'll pay income taxes plus a 10% penalty if under 59½). Never cash out if you can avoid it.

Withdrawing from a traditional 401(k) before age 59½ triggers a 10% early withdrawal penalty plus regular income taxes on the amount withdrawn. A $50,000 early withdrawal could cost you $15,000-$20,000 in taxes and penalties. Exceptions include hardship withdrawals, disability, and the Rule of 55 (leaving your job at 55 or older).

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Your Details

Quick Presets

Current Age30

1865

Retirement Age65

3175

Current Balance

Annual Salary

Your Contribution6%

1%25%

Employer Match50%

0%100%

Match Limit6%

0%10%

Expected Return7%

1%15%

Salary Growth2%

0%5%

Projected Balance

$1,413,497

Your Contributions

$224,975

Employer Contributions

$112,488

Investment Growth

$1,061,034

Monthly Retirement Income

$4,712

How It Works

Formula

Balance = (Previous Balance + Employee Contribution + Employer Match) × (1 + Return Rate)

Key Concepts

Employer Match

Vesting Schedule

Some employer matches vest over time (e.g., 20% per year over 5 years). You only keep the vested portion if you leave the company before being fully vested.

Contribution Limits

The IRS sets annual 401(k) contribution limits. For 2026, the limit is $23,500 for those under 50, and $31,000 for those 50 and older (catch-up contributions).

Tax-Deferred Growth

Pro Tips

At minimum, contribute enough to get the full employer match — not doing so is leaving free money on the table.
Increase your contribution by 1% each year — you'll barely notice the difference in your paycheck but it adds up enormously over time.
Choose low-cost index funds within your 401(k) — high expense ratios can eat 25-30% of your potential wealth over 30 years.
Consider a Roth 401(k) if your plan offers one — you pay taxes now but all growth and withdrawals in retirement are tax-free.
Don't cash out your 401(k) when changing jobs — roll it into an IRA or your new employer's plan to avoid taxes and penalties.

Real-World Example

David is 30, earns $75,000/year, has $15,000 in his 401(k), contributes 8% of salary, and his employer matches 50% up to 6%.

1Annual salary: $75,000 (growing 2%/year)

2Employee contribution: 8% = $6,000/year

3Employer match: 50% of first 6% = $2,250/year

4Total annual contribution: $8,250

5Expected return: 7%

6Years to retirement (age 65): 35 years

Fact-Checked — All content is reviewed for accuracy against authoritative sources including IRS.gov, Federal Reserve data, and established financial research.

Frequently Asked Questions

Related Calculators

Retirement

Calculate how much you need to save to retire comfortably at your target age.

Open Calculator

Compound Interest

Calculate how your money grows over time with the power of compound interest.

Open Calculator

Investment Return

Project your investment growth with annual returns and contributions.

Open Calculator

Related Guides

Retirement