401(k) Calculator
$375 a month out of paycheck
50 means $0.50 added per $1 you put in
Full match captured — nice.
6–7% is a common long-run planning figure
Projected balance in 30 years
$928,552
≈ $3,095/mo income at a 4% withdrawal rate
Employer match is worth $283,110
$2,250 a year of match money compounding alongside yours.
Year-by-year growth
| Year | You contributed | Employer added | Growth | Balance |
|---|---|---|---|---|
| Year 1 | $4,500 | $2,250 | $875 | $17,625 |
| Year 2 | $9,135 | $4,568 | $2,266 | $25,968 |
| Year 3 | $13,909 | $6,955 | $4,222 | $35,086 |
| Year 4 | $18,826 | $9,413 | $6,796 | $45,035 |
| Year 5 | $23,891 | $11,946 | $10,042 | $55,879 |
| Year 6 | $29,108 | $14,554 | $14,022 | $67,684 |
6% contribution with a 50% match capped at 6% of pay, 6.50% return.
Your 401(k) is three engines running at once: your contributions, your employer's match, and compounding on both. Most projections show one blurred number. This one splits all three — including the dollar value of the match most people leave partly unclaimed.
A 401(k) projection is a compound-interest calculation wearing a payroll badge. What makes it different from a generic investment projection is the employer match — an immediate, guaranteed return on part of every dollar you contribute — and the payroll mechanics: contributions come out before you ever see the money, which is why participation rates rise when enrollment is automatic.
Balance = Σ (Employee + Match) × (1 + r)^t- Employee
- your contribution per period (salary × contribution %)
- Match
- employer contribution: match % × min(contribution %, cap %) × salary
- r
- annual return, compounded monthly
- t
- years each dollar compounds before retirement
Worked example: $75,000 salary, 6% with a 50% match
Contribute 6% of $75,000 and you put in $375 a month. A 50% match capped at 6% adds another $187.50 — so $562.50 actually lands in the account every month, and you gave up only $375 of take-home (less, in fact: the traditional contribution also reduces taxable income). Start at 30 with $10,000 saved and a 6.5% return, and the balance at 65 is roughly $970,000 — of which about $317,000 is your own money, $159,000 is the match, and the remaining half-million is compounding.
| Source | Total contributed | Share of final balance |
|---|---|---|
| Your contributions | $157,500 | ≈33% |
| Employer match | $78,750 | ≈16% |
| Compound growth | ≈$530,000 | ≈51% |
Illustrative; exact figures depend on contribution timing and the return path.
The match is the only guaranteed return in investing
A 50% match is a 50% instant return before any market growth. No stock, bond or fund offers that — it's the closest thing to free money in personal finance, and study after study finds workers leaving it on the table, usually because the default contribution rate sits below the cap. If you do one thing after using this calculator, check your contribution rate against your plan's match cap. It takes two minutes, and it may be the highest-yield financial decision of your year.
| Your contribution | Employer adds | Match left unclaimed / yr | Over 30 years at 6.5% |
|---|---|---|---|
| 6% — $4,500 | $2,250 | $0 | — |
| 4% — $3,000 | $1,500 | $750 | ≈$64,000 |
| 2% — $1,500 | $750 | $1,500 | ≈$128,000 |
Contribution limits and catch-ups
The IRS caps employee deferrals annually (with higher limits from age 50 via catch-up contributions, and separate total-contribution ceilings that include the match). Limits are per person, not per plan — two jobs in one year share the same cap. The calculator does not enforce limits: enter what your payroll actually allows and verify the current-year figure against the IRS page in our sources.
The mistakes this calculator helps you avoid
- Contributing below the match cap — the quiet loss compounds for decades
- Assuming the sticker salary is what you can afford to contribute — traditional contributions are pre-tax, so $375 contributed costs roughly $285 of take-home at a 24% marginal rate
- Ignoring raises — the calculator's raise assumption shows how a flat contribution rate keeps pace with pay automatically
- Planning on the nominal balance alone — a dollar at 65 buys far less than a dollar at 35
Sources & review
Reviewed by The Numberridge Editorial Team
Fact-checked · methodology documented
Every formula on this page is checked against the primary source documentation listed below before publication.
Last updated October 2026
Frequently asked questions
How does employer match work?
The employer adds a percentage of what you contribute, up to a cap. A typical formula is 50% of contributions up to 6% of salary: contribute 6% and the employer adds another 3%. Contributions above the cap get no match, so the cap is the minimum contribution almost every planner recommends.
How much should I contribute to my 401(k)?
At minimum, the full match — it is an instant 50%–100% return no investment can promise. Beyond that, common targets are 10%–15% of salary including the match. If that is not possible now, start where you can and schedule automatic 1% increases each year or with each raise.
What is the 2026 401(k) contribution limit?
The employee deferral limit adjusts annually for inflation; for exact current figures check the IRS announcement page (linked in our sources). Catch-up contributions of an additional amount are available from age 50. Our calculator doesn't enforce the limit — your payroll system wins any disagreement, so trust its figure.
Is the employer match really free money?
Economically, yes: it is compensation you earn by participating. It does vest on a schedule — some plans vest immediately, others over two to six years — so leaving early can forfeit unvested match dollars. Check your plan's vesting schedule before changing jobs.
What return should I assume for my 401(k)?
For a target-date or diversified equity-heavy fund mix, 6%–7% nominal is a common long-run planning figure. Target-date funds get more conservative as retirement approaches, so a blended 5%–6% over a whole career is a defensible, slightly conservative choice.
How much will my 401(k) pay me per month in retirement?
A common estimate is the 4% rule: withdraw 4% of the balance in year one, then adjust for inflation. The calculator shows the corresponding annual and monthly income. Treat it as a planning anchor, not a guarantee — sequence of returns matters, especially early in retirement.
Roth 401(k) or traditional 401(k)?
Traditional contributions reduce taxable income now; Roth contributions grow tax-free and withdraw tax-free. A rough guide: if you expect a higher tax rate in retirement than today, Roth wins; if lower, traditional wins. Many savers split the difference. This calculator projects either on a pre-tax basis.
What happens to my 401(k) when I change jobs?
Four options: leave it, roll it into an IRA, roll it into the new employer's plan, or cash out. Cashing out triggers income tax plus a 10% penalty before 59½ and ends decades of compounding. Rolling over preserves the tax shelter — the almost-always better move.
Still unsure? Ask us a question — we answer within two business days.
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