401(k) Calculator
Two things drive a 401(k) balance: what you put in, and what your employer adds on top. Enter your salary, contribution rate, and match details for a year-by-year projection that factors in compound growth and salary growth.
Updated
Educational purposes only.
This calculator provides simplified projections based on constant annual returns and does not account for 401(k) contribution limits, taxes on withdrawal, Required Minimum Distributions (RMDs), or market volatility. This is not financial advice.
Educational purposes only. These calculators illustrate concepts and do not constitute investment advice. Read our disclaimer
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</p>What is 401(k)?
A 401(k) is an employer-sponsored retirement account funded by payroll deferrals, often alongside an employer match. Contributions and any match compound inside the account, and the balance is not taxed as it grows. Tax is applied either on the way in or on the way out, depending on the account type.
The formula
Balance = Σ (annual contribution + employer match) compounded at r for the years remaining- annual contribution = salary × deferral rate
- employer match = salary × match rate, capped at the match limit
- r = assumed annual return
On a $70,000 salary deferring 6%, the employee contributes $4,200 a year. With a 50% match on up to 6% of salary, the employer adds $2,100, for $6,300 going in annually. Each year's $6,300 then compounds for however many years remain before withdrawal. The first year's deposit compounds for the full period; the last year's barely at all.
2026 contribution limits
The IRS sets separate caps on what an employee may defer and on total contributions from all sources. The employee deferral limit applies across all 401(k) accounts a person holds in the same year; the total limit includes the employer match.
| Limit | Under 50 | Age 50+ |
|---|---|---|
| Employee deferral | $24,500 | $32,500 |
| Catch-up contribution | — | $8,000 |
| Catch-up, ages 60-63 | — | $11,250 |
| Total from all sources | $72,000 | $80,000 |
Figures are the IRS limits for tax year 2026 and are adjusted annually. A higher catch-up applies at ages 60-63 under SECURE 2.0. Confirm current limits at irs.gov before relying on them.
How employer match formulas work
A match is expressed as a percentage of what the employee contributes, up to a percentage of salary. "50% up to 6%" means the employer adds 50 cents per dollar deferred, until deferrals reach 6% of salary. Deferring more than 6% is allowed, but the match stops climbing.
A dollar-for-dollar match up to 3% works differently. It matches 100% of the first 3% of salary deferred, so on a $70,000 salary that is $2,100 from the employee and $2,100 from the employer, and deferrals beyond 3% are unmatched.
- 50% up to 6% of salary: the most common structure
- 100% up to 3% of salary: a smaller cap, matched fully
- Tiered, e.g. 100% of the first 3% then 50% of the next 2%
- Non-elective: a flat percentage contributed regardless of employee deferrals
Vesting decides what the match is actually worth
Employee contributions belong to the employee immediately. Employer contributions may be subject to a vesting schedule, meaning the money is forfeited if the employee leaves before a stated period.
Cliff vesting grants nothing until a date and then everything at once. Under a three-year cliff, an employee leaving at month 35 keeps none of the match. Graded vesting releases it in increments instead, commonly 20% a year over five years. Neither schedule affects the employee's own contributions.
Traditional and Roth 401(k) differ on tax timing
Traditional contributions are made before income tax, reducing taxable income in the contribution year, and withdrawals in retirement are taxed as ordinary income. Roth contributions are made after tax, so there is no deduction now, and qualified withdrawals are not taxed.
The arithmetic difference is which tax rate applies: the rate at the time of contribution, or the rate at the time of withdrawal. Both are subject to the same combined deferral limit, so the cap is shared rather than doubled by using both.
What this calculator does not account for
- Contribution limits shown are the IRS figures for tax year 2026 (Notice 2025-67) and are adjusted annually. Confirm current limits at irs.gov.
- The return rate is constant. Real returns vary year to year and the sequence matters, not just the average.
- Salary growth, if modeled, is applied evenly. Raises and gaps in employment are not.
- Vesting is not applied, so the projection assumes the full match is retained.
- No fees or fund expense ratios are deducted, and plan expenses reduce the effective return every year.
- No taxes are applied at withdrawal, which understates what a traditional 401(k) balance is worth after tax.
This calculator models one employer account and its match; the retirement calculator covers total savings across sources against a target income. Retirement Calculator
How It Works
Enter your current details
Your age, salary, current 401(k) balance, and contribution percentage.
Set employer match details
Your employer's match rate and the salary percentage they match on.
Choose assumptions
Expected annual return and salary growth rate.
Review your projection
See your projected balance at retirement, total contributions, employer match total, and investment growth.
Frequently Asked Questions
A 401(k) is an employer-sponsored retirement savings plan that allows employees to contribute a portion of their pre-tax salary to investment accounts. Contributions lower your taxable income for the year, and investment gains grow tax-deferred until withdrawal in retirement.
A common structure is a 50% match on up to 6% of salary: contribute 6% of your pay and your employer adds another 3%. Employer match dollars are additional to what you contribute yourself.
For 2025, the employee contribution limit is $23,500 ($31,000 if you are 50 or older, with the catch-up contribution). Employer contributions do not count toward this limit. The combined employee + employer limit is $70,000 ($77,500 with catch-up). These limits are adjusted annually for inflation.
Most financial educators suggest contributing at least enough to receive the full employer match. However, individual circumstances vary — consider your overall financial situation, debts, and other savings goals when deciding.
A 401(k) is offered through an employer and typically has higher contribution limits and potential employer matching. An IRA (Individual Retirement Account) is opened independently with lower contribution limits ($7,000 in 2025). Both offer tax advantages, but they differ in investment options, fees, and withdrawal rules.
When you leave a job, you can typically keep the 401(k) with your old employer, roll it into your new employer's plan, roll it into an IRA, or cash it out (which triggers taxes and penalties if under 59½). Rolling into an IRA often provides more investment options and lower fees.