How to use this 401(k) calculator
- Annual salary — your gross pay before taxes.
- Your contribution — the percentage of each paycheck you defer into the plan.
- Employer match and match limit — from your plan documents. "50% up to 6%" means a match of 50 and a limit of 6.
- Current balance — what is already in the account.
- Annual salary increase — your expected average raise. Contributions grow with your pay.
- Expected return and years until retirement — your growth assumption and time horizon.
Contributions go in monthly and the annual return is applied as its monthly equivalent. The year-by-year table shows your salary, both sets of contributions and the running balance.
How employer matching works
The yearly match is:
Match = salary × match rate × the smaller of (your contribution %, match limit %)
- Dollar for dollar up to 4%: contribute 4% or more and your employer adds 4% of salary.
- 50% up to 6%: contribute 6% or more and your employer adds 3% of salary. Contribute only 4% and the match drops to 2%.
- Tiered formulas such as "100% of the first 3% plus 50% of the next 2%" give 4% of salary when you contribute 5%. To model it, enter a match of 80 and a limit of 5 — exact at 5% or more, and a close approximation below that.
Contributing less than the match limit leaves part of your compensation unclaimed. The calculator flags this and shows how much you would gain.
Worked example
You earn $75,000, contribute 6%, and your employer matches 50% up to 6%. You have $25,000 saved, expect 3% raises and a 7% return, and have 30 years to go.
- First year: you contribute $4,500 and your employer adds $2,250.
- Over 30 years you contribute about $214,089 and your employer adds $107,045.
- Projected balance: $1,093,003 — the rest is investment growth on your money and the match.
How much your contribution rate matters
Same $75,000 salary, 50% match up to 6%, 3% raises, 7% return, 30 years, starting from zero:
| You contribute | Your total | Employer total | Balance at retirement |
|---|---|---|---|
| 3% | $107,045 | $53,522 | $451,348 |
| 6% | $214,089 | $107,045 | $902,696 |
| 10% | $356,816 | $107,045 | $1,303,895 |
| 15% | $535,223 | $107,045 | $1,805,393 |
Going from 3% to 6% doubles the match as well as your own savings. Beyond 6% the match stops growing, but every extra percent still compounds for decades.
Contribution limits
The IRS caps how much you can defer into a 401(k) each year, allows an extra catch-up contribution once you turn 50, and sets a separate, higher cap on combined employee and employer contributions. These dollar limits are adjusted for inflation most years, so check the current figures on IRS.gov. This calculator does not apply the caps — if your projected contributions exceed them, your actual contributions will be lower.
Other things to know
- Vesting. Your own contributions are always yours. Employer contributions may vest over several years; leave before you are fully vested and you can forfeit part of the match.
- Traditional vs. Roth 401(k). Traditional contributions reduce your taxable income now and are taxed when withdrawn. Roth contributions are taxed now, and qualified withdrawals are tax-free. The balance shown here is before any taxes.
- Fees. Fund expense ratios come straight out of your return. Enter your expected return after fees.
- Early withdrawals. Taking money out before age 59½ generally triggers income tax plus a 10% penalty, with some exceptions.
Results are estimates, not investment or tax advice. Your plan administrator and the plan's summary description have the exact rules for your account.
Frequently asked questions
Should I contribute at least enough to get the full match?
For most people, yes. The match is part of your pay, and skipping it means turning down money your employer has already set aside for you. If cash is tight, reaching the match limit is often the first savings milestone to aim for.
What is vesting?
Vesting is how long you must work for your employer before its contributions belong to you. Plans use either a cliff schedule (all at once after a set period) or a graded schedule (a share each year). Your own contributions are always 100% vested.
Should I choose a traditional or Roth 401(k)?
Traditional contributions lower your taxes today; Roth contributions lower your taxes in retirement. If you expect a higher tax rate later, Roth tends to win; if you expect a lower one, traditional does. Many people split between both.
What happens to my 401(k) if I change jobs?
You can usually leave it in the old plan, roll it into your new employer’s plan, or roll it into an IRA. Cashing it out generally means paying income tax and possibly a 10% early-withdrawal penalty.
Does this calculator include taxes or the IRS limit?
No. Balances are shown before taxes, and contributions are not capped at the annual IRS limit. Check IRS.gov for the current year’s limits.
Last updated: October 8, 2026