Use our 401k calculator to estimate retirement savings, contributions, and growth to plan your financial future smarter.
Project your 401k growth with employer matching.
The 401k Calculator is your essential tool for projecting retirement savings through your employer-sponsored retirement plan. A 401k is one of the most powerful wealth-building vehicles available to American workers, offering tax advantages, employer matching contributions, and compound growth potential that can turn consistent contributions into a substantial retirement nest egg.
Whether you're just starting your career and wondering how much to contribute, approaching retirement and checking if you're on track, or optimizing your contribution strategy to maximize employer matching, this calculator provides the projections you need to make informed decisions about your financial future.
FV = Future value (projected 401k balance)
Balance = Current 401k balance
r = Annual return rate (e.g., 0.07 for 7%)
n = Years until retirement
Annual Contribution = Salary × (Your Contribution % + Employer Match %)
This formula accounts for compound growth on both your existing balance and future contributions, including employer matching.
Projected balance after 30 years with $85,000 salary, 4% employer match, 7% annual return, 2% salary growth:
| Your Contribution | Annual Savings* | Projected Balance | Employer Free Money | Monthly Retirement Income** |
|---|---|---|---|---|
| 3% | $5,950 | $812,000 | $152,000 | $2,707 |
| 6% | $8,500 | $1,160,000 | $217,000 | $3,867 |
| 10% | $11,900 | $1,624,000 | $217,000 | $5,413 |
| 15% | $16,150 | $2,204,000 | $217,000 | $7,347 |
| Max ($24,000) | $27,400 | $3,741,000 | $217,000 | $12,470 |
*First year total (your contribution + employer match). **Based on 4% safe withdrawal rule. Assumes $25,000 starting balance.
Employer matching is the single best return on investment available to most workers. Here's why:
Not contributing enough to get full employer match: This is leaving free money on the table. If your employer matches 50% up to 6%, contributing only 4% means you're missing $850/year in free money on an $85,000 salary. Over 30 years at 7% return, that's $85,000+ lost.
Wrong investment allocation: Many employees leave 401k funds in default money market or stable value accounts earning 2-3%. At age 30, you should be 80-90% in stock index funds. Being too conservative costs hundreds of thousands in growth over decades.
Early withdrawal penalties: Withdrawing before age 59½ triggers a 10% penalty PLUS income taxes (potentially 35-40% total loss). A $50,000 withdrawal becomes $30,000-$32,500 after penalties and taxes. Keep emergency funds separate; don't raid retirement.
Cashing out when changing jobs: Rolling over to new employer's 401k or an IRA preserves tax-deferred growth. Cashing out a $100,000 balance at age 35 could cost you $500,000+ in retirement value.
Ignoring fees: A 1% expense ratio vs. 0.1% costs $200,000+ over 40 years on a portfolio reaching $1M. Check your plan's fund options and choose low-cost index funds when available.
| Feature | Traditional 401k | Roth 401k |
|---|---|---|
| Tax on contributions | Pre-tax (reduces current taxable income) | After-tax (no current tax benefit) |
| Tax on withdrawals | Taxed as ordinary income | Tax-free (if qualified) |
| Best if you expect | Lower tax rate in retirement | Higher tax rate in retirement |
| Ideal for | High earners now, lower retirement income | Early career, expects income growth |
| RMDs at age 73 | Required | Required (but can roll to Roth IRA to avoid) |
| Employer match goes to | Traditional 401k (always pre-tax) | Traditional 401k (always pre-tax) |
Tax diversification strategy: Many advisors recommend splitting contributions 50/50 between Traditional and Roth 401k. This hedges against future tax rate uncertainty and gives flexibility in retirement to manage taxable income.
| Category | 2026 Limit |
|---|---|
| Employee Contribution (under 50) | $24,000 |
| Catch-up Contribution (ages 50-59, 64+) | $7,500 additional |
| Super Catch-up (ages 60-63) | $11,250 additional |
| Total Employee + Employer | $70,000 |
| Total with Catch-up (50+) | $77,500 |
Sources & Disclaimer: 401k contribution limits for 2026 based on IRS guidelines and SECURE 2.0 Act provisions. Investment return assumptions use historical market averages; actual returns will vary. Employer match examples are illustrative—consult your plan documents for specific matching formulas and vesting schedules. This calculator provides estimates for educational purposes and should not be considered financial advice. Consult a qualified financial advisor or tax professional for personalized retirement planning. IRS Publication 560 and IRS.gov provide official 401k rules and limits.
Financial experts recommend contributing at least enough to get your full employer match (typically 3-6% of salary)—this is free money with a 50-100% guaranteed return. Ideally, aim for 10-15% of your gross income including employer match. If you're starting late (age 40+), consider 15-20% or more to catch up. The key priority order: (1) Get full employer match, (2) Max out HSA if eligible, (3) Max out 401k to IRS limit, (4) Invest in taxable brokerage. Even 1% more now can mean $50,000+ extra at retirement.
For 2026, the IRS 401k contribution limits are: Employee elective deferrals: $24,000 (up from $23,500 in 2025). Catch-up contributions for ages 50+: $7,500 additional. NEW for 2025-2026: Super catch-up for ages 60-63: $11,250 additional (total $35,250). Total contribution limit (employee + employer): $70,000. These limits apply to traditional 401k, Roth 401k, and combined contributions. Note: Employer matching contributions don't count toward your $24,000 limit—they count toward the $70,000 total limit.
Yes, a 401k without employer match is still valuable for three key reasons: (1) Tax advantages—Traditional 401k reduces taxable income by up to $24,000/year, saving $5,000-$9,000 in taxes depending on bracket. Roth 401k provides tax-free growth and withdrawals. (2) Higher limits—401k allows $24,000/year vs. IRA's $7,000 limit. (3) Automatic savings—Payroll deductions enforce discipline. However, consider alternatives first: If your 401k has high fees (>0.5%), contribute to match (if any), then max out IRA, then return to 401k. For no-match plans, compare 401k fees vs. opening a Vanguard/Fidelity IRA with 0.03% funds.