401(k) Calculator
Project your 401(k) savings to see if you are on track for a comfortable retirement.
401(k) Calculator
Maturity Projections
What is a 401(k) Calculator?
A 401(k) calculator helps you project your retirement nest egg by combining your current savings, future contributions, employer matching, and expected investment growth over time. It visually demonstrates the power of compound interest and the significant advantage of maximizing your employer match.
How Employer Matching Works
Employer matching is "free money" added to your retirement account on top of your own contribution. This calculator models it as a flat percentage of your salary, contributed every year in addition to your own percentage — enter whatever match rate your plan actually offers (check your plan documents; common real-world matches range from 3% to 6% of salary, sometimes with conditions like a vesting schedule).
Worked Example
Starting with a $50,000 balance, a $75,000 salary, contributing 10% of salary ($7,500/year) with a 5% employer match ($3,750/year), growing at 7% annually for 25 years:
- Total annual contribution (you + employer) = $11,250
- Projected balance after 25 years = $1,032,732
Projected Balance at Different Contribution Rates
Same $75,000 salary, $50,000 starting balance, 5% employer match, 7% annual return, 25 years to retirement:
| Your Contribution Rate | Your Annual Contribution | Projected Balance (25 yrs) |
|---|---|---|
| 5% | $3,750 | $778,945 |
| 10% | $7,500 | $1,032,732 |
| 15% | $11,250 | $1,286,519 |
Frequently Asked Questions
What is the 401(k) contribution limit?
For 2026, the IRS employee contribution limit for a 401(k) is $24,500, with an additional $8,000 catch-up contribution allowed for those age 50 and over. Employer contributions do not count against this employee limit, though a separate, higher combined limit applies to total contributions from both sides. Always confirm the current-year limit on irs.gov before maxing out your contributions.
Is employer matching really "free money"?
Yes, in the sense that it is compensation you forfeit entirely if you do not contribute enough to claim it. If your employer matches 5% of salary and you contribute less than that, you are leaving part of your compensation on the table. Most financial advisors recommend contributing at least enough to capture the full match before directing savings anywhere else.
What happens to my 401(k) if I switch jobs?
You generally have four options: leave it with your former employer’s plan (if allowed), roll it over into your new employer’s 401(k), roll it over into an IRA, or cash it out. Cashing out before age 59½ usually triggers income tax plus a 10% early-withdrawal penalty, so a rollover is almost always the better move if you want to preserve the balance.
Traditional 401(k) or Roth 401(k) — which is better?
A traditional 401(k) uses pre-tax contributions, lowering your taxable income now, with withdrawals taxed in retirement. A Roth 401(k) uses after-tax contributions, so withdrawals in retirement are tax-free. Roth generally favors people who expect to be in a higher tax bracket in retirement than they are now; traditional favors the reverse. Many plans let you split contributions between both.
How is my 401(k) balance invested?
Your contributions are typically invested in a menu of mutual funds or target-date funds chosen by your plan administrator, not held as cash. A target-date fund automatically shifts from growth-oriented (equity-heavy) to conservative (bond-heavy) as you approach the fund’s target retirement year, which is why this calculator uses a single blended average annual return rather than year-by-year market swings.