401(k) Calculator
See your projected 401k balance at retirement broken down into your contributions, employer match, and investment growth, and how changing your contribution rate reshapes the outcome.
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Enter your values above to see the results.
Tips & Notes
- ✓Always contribute at least enough to capture the full employer match before any other savings — declining the match is equivalent to declining part of your salary.
- ✓Increase your contribution rate by 1% every year or with every salary raise — behavioral research shows automatic escalation produces far higher final balances than relying on willpower.
- ✓Target date funds are the appropriate default for most 401k investors — they automatically adjust allocation from growth-oriented to conservative as retirement approaches.
- ✓Traditional 401k contributions reduce current taxable income — a 10% contribution from a $80,000 salary saves $1,600-$2,240 in annual federal income taxes depending on your bracket.
- ✓Check your vesting schedule before leaving an employer — unvested employer contributions are forfeited, and leaving before full vesting permanently surrenders that money.
- ✓Roth 401k contributions, if available, allow tax-free growth and tax-free withdrawals in retirement — valuable for younger employees who expect to be in a higher tax bracket at retirement.
Common Mistakes
- ✗Not contributing enough to capture the full employer match — this is the single most expensive retirement mistake most employees make, often costing hundreds of thousands over a career.
- ✗Cashing out a 401k when changing jobs instead of rolling it over — a $50,000 cashout triggers income taxes plus a 10% early withdrawal penalty, immediately losing 30-40% of the balance.
- ✗Leaving money in a former employer plan without reviewing the investment options — old 401k plans often have higher-fee funds than a rollover IRA at a discount brokerage.
- ✗Never increasing the contribution rate after the initial enrollment — employees who set a rate at enrollment and never update it miss the compounding benefit of increasing contributions with each raise.
- ✗Holding too much company stock in the 401k — concentration in a single employer stock creates double risk: your income and your retirement savings depend on the same company.
- ✗Borrowing from the 401k — loans reduce the invested balance, miss market growth during repayment, and become fully taxable distributions if employment ends before repayment.
401(k) Calculator Overview
A 401k calculator projects what consistent contributions to an employer-sponsored retirement plan will produce at retirement, separating your contributions from employer match and investment growth. The employer match is the most important variable — it is a guaranteed return on every matched dollar that no other investment can replicate.
Most employees never maximize their match. This calculator shows exactly what that decision costs over a career.
What each field means:
- Salary — your annual gross compensation; determines the dollar amount of each contribution percentage
- Contribution — your contribution as a percentage of salary; 401k limit is $23,000/year in 2024
- Employer Match — the percentage of your contribution the employer matches
- Match Limit — the maximum salary percentage the employer will match
- Return Rate — expected annual investment return in the 401k; use 6-7% for a diversified target date fund
- Vesting Years — years until employer contributions are fully yours; unvested match is lost if you leave
- Current Age — your age today; determines years of growth remaining
- Years — years until retirement; used to project final balance
What your results mean:
- Projected Balance — total 401k value at retirement including all contributions and growth
- Your Total Contributions — every dollar you personally contributed over the full period
- Employer Contributions — total employer match received across the full vesting period
- Investment Growth — returns earned on both your contributions and employer match
- Monthly Contribution — your dollar contribution per month at your current salary and rate
Example — $75,000 salary, 8% contribution, 50% match up to 6%, 7% return, 30 years:
Your annual contribution: $75,000 x 8% = $6,000 Employer annual match: $75,000 x 6% x 50% = $2,250 Total annual input: $8,250 After 30 years at 7%: projected balance $822,000 Your total contributions: $180,000 Employer contributions: $67,500 Investment growth: $574,500 (70% of final balance from growth alone) If you contributed only 6% (just to capture full match): balance $720,000 Difference from the extra 2%: $102,000 more by contributing 8% vs 6%
EX: The cost of not capturing the full employer match $75,000 salary, 50% match up to 6% of salary, 7% return, 30 years Contribute 0%: balance $0 — leaving $2,250/year in employer money unclaimed Contribute 3%: balance $343,000 — employer contributes $1,125/year (partial match) Contribute 6%: balance $720,000 — full employer match captured ($2,250/year) Contribute 10%: balance $950,000 — full match plus extra personal contribution Not contributing enough to get the full match costs $377,000 over 30 years.
Projected balance by contribution rate and years — $75,000 salary, 50% match up to 6%, 7% return:
| Contribution Rate | 20 years | 30 years | 40 years |
|---|---|---|---|
| 6% (full match) | $289,000 | $720,000 | $1,650,000 |
| 10% | $381,000 | $950,000 | $2,175,000 |
| 15% | $509,000 | $1,268,000 | $2,900,000 |
Employer match value over time — $75,000 salary, 50% match up to 6%, 7% return:
| Years | Match Contributed | Match Value with Growth | Growth on Match |
|---|---|---|---|
| 10 years | $22,500 | $31,200 | $8,700 |
| 20 years | $45,000 | $88,200 | $43,200 |
| 30 years | $67,500 | $212,000 | $144,500 |
The 401k contribution limit creates a ceiling that most employees never approach, but the employer match creates a floor that every employee should meet before any other savings allocation. Failing to contribute enough to capture the full match is equivalent to declining a portion of your salary — the match money exists and is available, and not claiming it does not reduce the employer cost, it simply means the money stays with the employer.
Frequently Asked Questions
A 401k is an employer-sponsored retirement savings plan that allows employees to contribute pre-tax income (traditional) or after-tax income (Roth) up to annual IRS limits. In 2024, the employee contribution limit is $23,000, with an additional $7,500 catch-up contribution for those 50 and older. Contributions grow tax-deferred (traditional) or tax-free (Roth). Many employers match a portion of employee contributions up to a salary percentage limit. Withdrawals from traditional accounts in retirement are taxed as ordinary income. Early withdrawals before age 59.5 trigger a 10% penalty plus income taxes.
At minimum, contribute enough to capture the full employer match — this is free money with a guaranteed 50-100% immediate return. Beyond the match, target 15% of gross income including the match for retirement adequacy based on most financial planning guidelines. The priority order: capture the full employer match first, then maximize a Roth IRA if eligible ($7,000/year in 2024), then return to maximize the 401k up to the $23,000 limit. If you cannot reach 15% immediately, increase by 1% annually or with each raise until you reach the target.
Traditional 401k contributions are pre-tax — they reduce your taxable income now and grow tax-deferred, with withdrawals in retirement taxed as ordinary income. Roth 401k contributions are after-tax — no current tax deduction, but all growth and qualified withdrawals are completely tax-free. The Roth is advantageous if you expect to be in a higher tax bracket in retirement than today. Traditional is advantageous if you expect lower taxes in retirement. For younger employees early in their careers with lower current income, Roth contributions are typically preferable. Many plans allow splitting contributions between both types.
You have four options when leaving an employer. Roll over to your new employer plan — consolidates accounts and maintains tax-deferred growth. Roll over to an IRA — typically provides more investment options and lower fees. Leave it in the former employer plan — allowed if the balance exceeds $5,000, though the investment menu may be limited. Cash it out — strongly discouraged due to income taxes plus 10% early withdrawal penalty that together consume 30-40% of the balance. The rollover to an IRA is usually the best option for most employees, as it consolidates assets and expands investment choices.
Vesting determines when employer contributions become permanently yours. Your own contributions are always 100% vested immediately. Employer match contributions may vest immediately (immediate vesting), all at once after a specified period (cliff vesting — often 3 years), or gradually over time (graded vesting — often 20% per year over 5 years). If you leave before full vesting, you forfeit the unvested portion of employer contributions. Always check the vesting schedule before leaving an employer — staying an extra year or two to achieve full vesting can be worth tens of thousands of dollars in employer contributions.
Early withdrawal before age 59.5 triggers a 10% penalty plus ordinary income taxes — together consuming 30-40% of the withdrawn amount depending on your tax bracket. Exceptions to the penalty include: separation from service at age 55 or older, disability, substantially equal periodic payments (SEPP/72t), qualified domestic relations orders (divorce), certain medical expenses, and first-time home purchase (Roth 401k only). Loans from a 401k avoid the penalty but reduce invested balance and become taxable distributions if you leave the employer before repayment. In virtually all circumstances, leaving the 401k intact until retirement produces far better outcomes.