401(k) Calculator
The 401(k) calculator projects your retirement account balance based on your salary, contribution percentage, employer match, and expected annual return. It separates your contributions from employer contributions so you can see the full value of your benefits package.
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Formula
Balance = PV(1+r)^t + (EE + ER) × [(1+r)^t − 1] / r
PV is your current balance. r is the annual return rate. t is years until retirement. EE is your annual employee contribution (salary × contribution rate). ER is the annual employer match contribution, capped at the employer match percentage. The formula compounds the existing balance and treats annual contributions as an annuity.
How to use the 401(k) Calculator
- 1
Enter your annual salary
Value should be in $.
- 2
Enter your your contribution rate
Value should be in %.
- 3
Enter your employer match (up to % of salary)
Value should be in %.
- 4
Enter your current 401(k) balance
Value should be in $.
- 5
Enter your years until retirement
Value should be in years.
- 6
Enter your expected annual return
Value should be in %.
- 7
Read your results instantly
Results update in real time as you type.
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How a 401(k) builds wealth
A 401(k) is a tax-advantaged retirement savings account offered by employers. You contribute pre-tax dollars (traditional 401(k)) or after-tax dollars (Roth 401(k)), and the money grows without annual tax drag until withdrawal. Traditional 401(k) contributions reduce your taxable income today; Roth contributions provide tax-free income in retirement.
The tax deferral is a substantial hidden return. If you're in the 22% federal tax bracket and contribute $10,000 to a traditional 401(k), your take-home pay only decreases by about $7,800 — the government effectively subsidizes $2,200 of your contribution. Over a career, this tax deferral compounds into a significant additional benefit.
In 2025, you can contribute up to $23,500 to a 401(k) if you're under 50, and $31,000 if you're 50 or older (catch-up contributions). These limits are indexed to inflation and increase periodically.
Employer matching: the guaranteed return
Employer matching is the single most valuable benefit most employees overlook. A typical match — 50 cents per dollar up to 6% of salary — is an immediate 50% return on your matched contributions. That return is guaranteed before a single investment is made.
Yet surveys consistently show that roughly 25% of employees with 401(k) access don't contribute enough to capture the full match. If your employer matches 3% of salary and you contribute only 2%, you leave 1% of your salary on the table every year — free money you're contractually entitled to but not collecting.
This calculator assumes your employer matches dollar-for-dollar up to the match percentage for simplicity. Many employers use a partial match structure (e.g., 50% of the first 6%), so check your plan documents to understand your actual match rate and run the numbers accordingly.
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Vesting schedules affect the real value of your match
Employer contributions often come with a vesting schedule — you only keep the matched contributions if you stay long enough. Cliff vesting gives you 0% until a threshold (often 3 years), then 100%. Graded vesting phases in over 2-6 years. If you leave before vesting, you forfeit unvested employer contributions.
This is a critical factor when evaluating job offers. A generous match that vests over 5 years is worth far less to someone planning to move jobs in 18 months than a smaller immediate match. Always ask about the vesting schedule before assuming you'll receive the full employer contribution shown in this calculator.
The projected balance assumes immediate 100% vesting, so adjust your expectations accordingly if you're early in employment or plan to change jobs.
Tips & Insights
Front-load contributions if you get a bonus
If you receive a large bonus or tax refund, consider temporarily increasing your 401(k) contribution percentage for a few pay periods to front-load the account. Your money starts compounding sooner, and you still receive employer match on each paycheck as long as you don't exceed the annual limit too early in the year — check your plan rules on how the match is structured.
Rebalance annually
Investment returns cause your asset allocation to drift over time. If stocks have a great year, you may end up more heavily weighted in equities than your target. An annual rebalance — selling overweighted assets and buying underweighted ones — keeps your risk profile consistent. Many plans offer automatic rebalancing at no additional cost.
Roll over when you change jobs
When you leave an employer, roll your 401(k) directly into your new employer's plan or into an IRA. A direct rollover avoids taxes and penalties. Leaving small balances scattered across former employers makes it harder to manage your overall asset allocation and can result in high-fee investment options that erode long-term growth.
Worked Examples
Early-career employee maximizing match
Contributing 6% of a $65,000 salary with a 3% employer match and $5,000 existing balance at 7% for 35 years projects to approximately $890,000 — employer match contributed roughly $68,000 and compounding turned the combined contributions into over $815,000 in growth.
Mid-career catch-up
A 45-year-old earning $120,000, contributing 15%, with a 4% employer match and $80,000 already saved, can project approximately $1.35 million by age 65 at 6.5% annual returns — the existing $80,000 alone grows to about $285,000.
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Frequently Asked Questions
What is the 401(k) contribution limit for 2025?
In 2025, the employee contribution limit is $23,500 for those under 50, and $31,000 for those 50 and older (the extra $7,500 is the catch-up contribution limit). Employer contributions are not counted toward these limits, and the combined employee + employer limit is $70,000.
Traditional 401(k) or Roth 401(k): which is better?
If you expect to be in a higher tax bracket in retirement than today, a Roth 401(k) is generally better — you pay taxes now at a lower rate and withdrawals are tax-free. If you expect to be in a lower bracket, a traditional 401(k) saves taxes now at a higher rate. Most younger workers benefit from Roth; those in peak earning years often prefer traditional. Many advisors recommend having both for tax diversification.
Can I contribute to both a 401(k) and an IRA?
Yes. You can contribute to both a 401(k) through your employer and an IRA independently. The combined limits are separate — maxing your 401(k) does not reduce your IRA contribution limit. However, your ability to deduct a traditional IRA contribution phases out at higher incomes if you're covered by a workplace retirement plan.
What should I invest in inside my 401(k)?
Most financial advisors suggest low-cost index funds that track broad market indices (S&P 500, total market, international). Look for expense ratios under 0.20%. A target-date fund matching your expected retirement year is a simple, automatic-rebalancing option suitable for most investors. Avoid high-fee actively managed funds unless there's compelling evidence of consistent outperformance.
What happens to my 401(k) if I lose my job?
Your 401(k) balance belongs to you — your contributions are always fully vested, and employer contributions vest per your plan's schedule. If you lose your job, you can leave the balance in your former employer's plan (if over $5,000), roll it into your new employer's plan, or roll it into a traditional IRA. Avoid cashing out, which triggers ordinary income tax plus a 10% early withdrawal penalty if you're under 59½.
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