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401(k) Calculator

Project your retirement balance with employer matching, annual contributions, and compounding growth over your working years.

Frequently Asked Questions

What are the 2026 401(k) contribution limits?

$23,500 for workers under 50; $31,000 with the standard age 50+ catch-up; $34,750 for the special ages 60-63 super catch-up under SECURE 2.0.

How is the employer match calculated?

A common match is 50% of your contribution up to 6% of salary. If your salary is $80,000 and you contribute 6% ($4,800), the employer adds $2,400. Contributions beyond 6% receive no additional match.

What investment return should I assume?

The S&P 500 has historically averaged roughly 7% after inflation. A nominal return of 6-8% is a reasonable range for long horizons; use the lower end if you hold significant bonds.

Should I choose a Traditional or Roth 401(k)?

If your current tax rate exceeds your expected retirement rate, choose traditional. If you expect higher taxes later or want tax-free withdrawals, choose Roth. Splitting between both hedges the uncertainty.

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Estimates for informational purposes only.

Important Disclaimer: Estimates for informational purposes only.

This calculator provides estimates for informational purposes only. Results are based on assumptions and may not reflect actual outcomes. Consult qualified professionals in relevant fields before making important decisions based on these results.

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How This Calculator Works

This 401(k) projector compounds your monthly contributions - yours plus the employer match - at your expected annual return, applied monthly, over the years until retirement. You enter salary, contribution percentage, the match terms, your current balance, return rate, and time horizon. The result splits your projected balance into total contributions versus investment growth so you can see how much compounding does the heavy lifting.

The formula is: FV = PV × (1 + r)ⁿ + PMT × [((1 + r)ⁿ − 1) ÷ r], where PV is your current balance, PMT is total monthly contribution, r is the monthly rate (annual ÷ 12), and n is months until retirement. The employer match is capped: it pays the match percentage of your contribution only up to the match-limit percent of your salary.

Employer Match: The Free Money

An employer match is an immediate guaranteed return on your contribution. A common arrangement is 50% match on up to 6% of salary - meaning if you earn $80,000 and contribute 6% ($4,800/year), your employer adds $2,400. That is a 50% instant return before any market growth, making it the most valuable part of most 401(k) plans.

Always contribute at least enough to capture the full match. Stopping short is equivalent to leaving part of your compensation on the table. After capturing the full match, you can decide whether to contribute more to the 401(k) or direct additional savings to an IRA or taxable account based on fees and investment options.

2026 Contribution Limits

The IRS sets annual limits on how much you can defer into a 401(k). For 2026, the employee elective deferral limit is $23,500 for workers under age 50. Savers aged 50 through 59 and 64 and older can add the standard catch-up contribution for a total of $31,000. The SECURE 2.0 Act created an enhanced super catch-up for ages 60 through 63, raising the total to $34,750 for that narrow window.

These limits apply only to your own contributions. The combined total of employee contributions, employer match, and after-tax contributions cannot exceed $70,000 (the section 415(c) limit) for 2026. High earners who max the employee limit can sometimes add after-tax dollars and then convert them to Roth - the so-called mega backdoor strategy.

Traditional vs. Roth 401(k)

Most employers now offer both a traditional pre-tax 401(k) and a Roth 401(k) within the same plan. Choosing between them is essentially a bet on future tax rates. With a traditional 401(k), contributions reduce taxable income today and all withdrawals in retirement are taxed as ordinary income. With a Roth 401(k), contributions come from after-tax dollars and all qualified withdrawals - including decades of investment growth - are completely tax-free.

The decision is personal. If you expect to be in a higher tax bracket in retirement (common for younger workers who will grow their income), Roth wins. If you expect lower income in retirement than today, the traditional deferral is usually better. Many advisors recommend splitting contributions between both to hedge the uncertainty.

Common Mistakes and Tips

Contributing below the match threshold: Leaving employer match unclaimed is surrendering part of your compensation.
Using an overly optimistic return: 6-8% is a more defensible long-run assumption than 10%, especially for the decade before retirement.
Forgetting that the match is capped: The employer matches a percentage of your contribution up to a percentage of salary, not your full contribution.
Treating the projection as inflation-adjusted: This calculator works in nominal dollars. At 3% inflation, $1,000,000 in 30 years buys what about $412,000 buys today.
Not increasing contributions with raises: Automatic annual escalation (common in modern plans) dramatically accelerates growth.

Tax laws change frequently. Verify current limits at IRS.gov and consult a qualified financial advisor before making retirement decisions.

Frequently Asked Questions

What are the 2026 contribution limits? $23,500 under 50; $31,000 with the age 50-59/64+ catch-up; $34,750 for the ages 60-63 super catch-up.

What return rate should I use? The S&P 500 has averaged about 7% after inflation historically. Trim toward 4-6% as you near retirement and increase bond allocation.

Should I choose Traditional or Roth? Traditional cuts taxes now; Roth grows tax-free. If you expect a higher bracket in retirement, Roth usually wins.

How much should I save? At minimum, capture the full employer match; then aim for 15% of gross income including the match.