401(k) Calculator
Project your 401(k) balance at retirement, including your contributions, employer match, salary growth, and investment returns — with a year-by-year growth chart.
Understanding the 401(k) Calculator
This tool projects the future value of a 401(k) retirement account based on your salary, contribution rate, employer match, expected return, and years until retirement. It is built for U.S. employees who want to see how regular paycheck contributions plus matching and compounding can grow over a career. It also shows the value of the employer match, often described as free money, and how small changes in contribution rate affect the final balance. Results are educational estimates; actual returns vary, and limits and tax rules are set by the IRS.
How it works
Enter your annual salary, the percent you contribute, your employer's match formula, your current balance, an expected annual return, and years to retirement. The calculator adds your contribution and the matched amount each year, then compounds the running balance at the assumed return. Read the result as a projected pre-tax balance at retirement. For 2026, the IRS caps employee elective deferrals at $24,500 (plus an $8,000 catch-up at age 50+), with a combined employee-plus-employer limit of $72,000. The model assumes steady salary and returns; real markets fluctuate, and traditional 401(k) withdrawals are taxed as income later.
Worked example
Earning $70,000 and contributing 10% gives $7,000 a year. With a 50% match on the first 6% of pay, the employer adds $2,100, for $9,100 invested annually. Starting from $0 at age 30, retiring at 65 (35 years), and assuming a 7% average return, the balance grows to roughly $1.26 million. The employer match alone contributes more than $290,000 of that total, which is why capturing the full match first is widely recommended.
Tips & common mistakes
- Always contribute at least enough to capture the full employer match; skipping it leaves free money behind.
- For 2026 the employee deferral limit is $24,500 ($32,500 with the age-50 catch-up).
- Small rate increases compound dramatically over decades; raising contributions 1-2% a year helps.
- Traditional 401(k) balances are pre-tax; withdrawals in retirement are taxed as ordinary income.
- Return assumptions are estimates; markets are volatile, so model a conservative rate to avoid overshooting.
Sources & methodology
- • Internal Revenue Service — 401(k) limit increases to $24,500 for 2026 (https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500)
- • U.S. Department of Labor — Saving and investing through your 401(k) (https://www.dol.gov)
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Reviewed by the TopOpenTools editorial team · Last updated June 2026. These tools provide general estimates for educational purposes only and are not financial, tax, insurance, investment, or medical advice. Verify important decisions with a qualified professional.
Frequently Asked Questions
How does employer match work?
Many employers match a percentage of your salary that you contribute — for example, 100% of the first 4%. That match is free money added to your 401(k). Enter your employer match percentage to include it.
What return should I assume?
A long-term average of 6–8% is common for a diversified 401(k), though actual returns vary year to year. Use a conservative figure to avoid over-estimating.
Are 401(k) withdrawals taxed?
Traditional 401(k) contributions are pre-tax and withdrawals in retirement are taxed as income. (A Roth 401(k) is the reverse.) This tool estimates the pre-tax balance. Not tax advice.