A 401(k) is the most powerful wealth-building tool available to most Americans, yet the average contribution rate is only 7% — well below the IRS maximum of $23,000 per year ($30,500 if you are 50 or older). The tax advantages are substantial: every dollar you contribute reduces your taxable income, and your investments grow tax-deferred for decades. A 30-year-old contributing $500/month with a 50% employer match and 8% average returns will have over $1.3 million by age 65. Without the match, that drops to $870K. This calculator projects your 401(k) growth based on contributions, employer match, expected returns, and time horizon.
401k Calculator
Project your 401k balance at retirement.
401k Growth Projection
$75K salary, 10% contribution, 4% match, 7% return
| Years | Your Contributions | Employer Match | Balance |
|---|---|---|---|
| 5 | $37,500 | $15,000 | $156,818 |
| 10 | $75,000 | $30,000 | $304,511 |
| 15 | $112,500 | $45,000 | $510,249 |
| 20 | $150,000 | $60,000 | $800,584 |
| 25 | $187,500 | $75,000 | $1,214,321 |
How to Use This Calculator
- Enter your current age and target retirement age
- Set your current 401(k) balance if you have one
- Enter your monthly contribution amount and your salary for match calculations
- Add your employer match details — common formats are 50% of first 6% or 100% of first 3%
- View your projected balance at retirement with and without employer matching
How It Works
This 401k calculator uses standard formulas to provide accurate results.
The basic rule:
- Future Value = Current Balance × (1+r)^n + Monthly × [(1+r)^n - 1]/r
- Monthly = (Salary × Your % + Salary × Match %) / 12
Tax laws and financial markets change frequently. Verify current rates with your financial institution.
Tips & Considerations
- Always contribute at least enough to get the full employer match. A 50% match on 6% of salary is an immediate 50% return on that money — nothing else comes close.
- The 2026 contribution limit is $23,000 ($30,500 for 50+). Maxing out from age 30 to 65 at 8% returns produces over $3.8 million.
- Traditional 401(k) reduces your taxes now but you pay taxes on withdrawals. Roth 401(k) is taxed now but grows and withdraws completely tax-free. If you expect higher taxes in retirement, Roth wins.
- Do not cash out your 401(k) when changing jobs. Rolling it to an IRA preserves the tax advantages. Early withdrawal triggers a 10% penalty plus income tax.
Frequently Asked Questions
How much should I contribute to my 401k?
At minimum, contribute enough to get the full employer match — that is free money. Ideally, aim for 15-20% of salary including the match. The 2026 employee limit is $23,500 ($31,000 if 50+).
What is an employer match?
Many employers match your contributions up to a percentage. A 4% match means if you contribute 4% of salary, your employer adds another 4%. Not taking the full match is leaving free money on the table.
What return should I expect?
A diversified portfolio historically returns 7-10% before inflation. Target-date funds are a simple option that automatically adjusts risk as you approach retirement.
Should I choose Roth or traditional 401k?
Traditional = tax deduction now, pay taxes in retirement. Roth = no deduction now, tax-free withdrawals in retirement. Roth is better if you expect higher taxes later.