401(k) Calculator
Calculate how much your 401(k) will be worth at retirement. See the impact of employer match, compound growth, and salary increases.
💰Your 401(k) Details
2026 limit: $23,500/yr (under 50) | $31,000/yr (50+)
You Put In
$453K
Employer Match
$136K
Growth
$2.28M
Free Money from Employer
$136K 🎁
That's money you'd lose by not contributing!
Where Your Money Comes From
401(k) Growth Over Time
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How the 401(k) Calculator Works
What a 401(k) Is and Why It's the Foundation of US Retirement
A 401(k) is an employer-sponsored retirement savings account available to most American workers. You contribute a percentage of your salary on a pre-tax basis (reducing your current taxable income), the money grows tax-deferred, and you pay ordinary income tax when you withdraw in retirement. Some employers offer a Roth 401(k) option where you contribute after-tax but withdraw tax-free.
The most powerful feature is the employer match — most companies match 50% or 100% of your contributions up to a limit (typically 3–6% of salary). This is effectively free money: for every dollar you contribute up to the match limit, your employer adds another 50 cents to a full dollar. No other investment offers a guaranteed 50–100% instant return.
The 2026 contribution limit is $23,500 for those under 50, and $31,000 for those 50+ (catch-up contribution). Total contributions including employer match cannot exceed $70,000 for those under 50, or $77,500 for 50+ in 2026. Employer match does not count against your personal $23,500 limit.
How Compound Growth Builds Your 401(k)
The 401(k)'s power comes from three combined forces: regular contributions, employer match, and decades of compound growth. A 30-year-old contributing 10% of a $75,000 salary (with a 50% match up to 6%) contributes about $8,250/year of their own money plus $2,250 in employer match — $10,500 total per year.
Invested in a diversified equity portfolio at 8% annual returns, that $10,500/year grows over 35 years to approximately $1.9 million. But here's the striking part: your own contributions total only $288,750. The rest is employer match ($78,750) plus compounding growth ($1.53 million). Over 90% of the final balance is investment growth.
The compounding accelerates dramatically in the final 10–15 years. From age 30 to 50, your 401(k) might grow to $500K. From 50 to 65, it can grow to $1.9M — because the compounding base is now much larger, and the returns on that large base dwarf your contributions.
What Return Rate Should You Assume?
The expected return on your 401(k) depends on your asset allocation. A portfolio of 80–90% equity (common for workers under 40) has historically returned 8–10% annually over long periods. A more conservative 60/40 portfolio returns 6–8%. A bond-heavy portfolio returns 4–6%.
For long-term projections (20+ years), using 7–8% is realistic and conservative. Using 10% assumes strong equity performance; using 5% assumes cautious allocation and higher fees. Be wary of projections using 12%+ — those are optimistic and could lead to under-saving if actual returns fall short.
The single biggest driver of returns in a 401(k) is the expense ratio of the funds you hold. Target-date funds and index funds typically charge 0.05–0.30%. Actively managed funds charge 0.5–1.5%. That 1% annual difference compounds to roughly 20% of your final 401(k) balance over 35 years.
Step-by-Step Worked Example
Meet Sarah, a 30-year-old earning $75,000/year. She contributes 10% to her 401(k), her employer matches 50% up to 6% of salary, and she has a starting 401(k) balance of $25,000. She plans to retire at 65 (35 years), expecting 8% annual returns and 3% annual salary growth.
- 1Year 1: She contributes $7,500 (10% of $75,000). Employer matches 50% of the first 6% ($4,500 × 50% = $2,250). Total contribution = $9,750.
- 2Balance grows at 8%: $25,000 + $9,750 = $34,750, then × 1.08 = $37,530.
- 3Year 5: Salary grown to $84,400; her contribution is $8,440; employer match is $2,532; balance ≈ $90,000.
- 4Year 15: Salary grown to $113,500; her contribution is $11,350; employer match is $3,405; balance ≈ $350,000.
- 5Year 25: Balance ≈ $900,000.
- 6Year 35: Final balance ≈ $1,900,000.
Result
Total she contributed: ~$380,000
Total employer match: ~$110,000
Total investment growth: ~$1,410,000
Final 401(k) balance at 65: ~$1,900,000
Note: 74% of the final balance comes from investment growth — not contributions
Key Benefits & Use Cases
When to Use This Tool
- ✓Projecting how much your 401(k) will be worth at retirement.
- ✓Deciding what contribution percentage to set — with employer match incentives modelled.
- ✓Understanding the massive value of the employer match over a career.
- ✓Comparing different retirement ages (60 vs 65 vs 70) and the impact on final balance.
- ✓Evaluating whether to increase contributions during high-salary years.
Why It Matters
- →Accounts for employer match — a feature most calculators ignore or simplify.
- →Models salary growth realistically (3% annual raise assumption).
- →Visualises where your money comes from (yours vs employer vs growth).
- →Shows the compounding curve clearly — where the growth accelerates.
- →Multi-purpose: works for both 401(k) and similar employer-sponsored plans.
Who Should Use This Calculator
- ★US employees with access to a 401(k) or similar employer plan.
- ★Anyone deciding how much to contribute to retirement.
- ★Employees evaluating job offers with different 401(k) match structures.
- ★Pre-retirees wanting to confirm their 401(k) will be sufficient.
Employer Match
See exactly how much free money you get from your employer's 401(k) match.
Compound Growth
Visualize how compound interest turns small contributions into a massive nest egg.
Salary Growth
Account for annual raises to see realistic long-term projections.
How to Use
Enter Age & Salary
Set your current age, retirement age, and annual salary.
Set Contributions
Enter your contribution percentage and your employer's match details.
Add Existing Balance
Include your current 401(k) balance for accurate projections.
View Retirement Wealth
See your total 401(k) value with detailed breakdown and growth chart.
The Formula
FV = PV(1+r)^n + C × [((1+r)^n - 1) / r]Frequently Asked Questions
How much should I contribute to my 401(k)?
At minimum, contribute enough to get your full employer match — that's free money you'd otherwise leave on the table. Ideally, aim for 15–20% of your salary to build an adequate retirement corpus. The 2026 contribution limit is $23,500 (under 50) or $31,000 (50+).
What is an employer 401(k) match?
An employer match is when your company contributes money to your 401(k) based on your contributions. A common match is 50% of your contribution up to 6% of salary. For a $75K salary, that's $2,250/year in free money — over 35 years, this becomes $78,750 in employer contributions that compound to over $500,000.
What is the average 401(k) return?
The average 401(k) return is roughly 7–10% per year depending on asset allocation. A portfolio with 80% stocks and 20% bonds has historically returned about 8–9% annually. Conservative 60/40 portfolios have returned 6–8%.
When can I withdraw from my 401(k)?
You can withdraw penalty-free at age 59½. Early withdrawals incur a 10% penalty plus income taxes, except in specific cases (Rule of 55, qualified medical expenses, disability). Required Minimum Distributions (RMDs) start at age 73 (75 for those born 1960+).
401(k) vs Roth IRA — which is better?
Both are excellent. 401(k) gives a tax deduction now but you pay taxes on withdrawal. Roth IRA contributions are after-tax but withdrawals are tax-free. Many experts recommend using both — max the 401(k) match, then fund a Roth IRA, then return to the 401(k).
How much do I need in my 401(k) to retire?
A common rule is 25x your annual expenses (the 4% rule). If you spend $60,000/year, aim for $1.5M. If you spend $100,000/year, aim for $2.5M. Social Security covers 30–40% of most retirees' expenses, so you may need less from your 401(k) alone.
Should I max out my 401(k)?
Yes, if you can afford it. Contributing the full $23,500/year reduces your current taxable income by that amount (saving $5,000–$9,000 in taxes) and builds a massive retirement corpus. Combined with employer match, maxing out is the most efficient wealth-building move for most US workers.
What happens to my 401(k) when I change jobs?
You have four options: (1) leave it with your old employer, (2) roll it into your new employer's 401(k), (3) roll it into an IRA, or (4) cash it out (never recommended — triggers taxes and 10% penalty). Rolling into an IRA usually gives the most investment options and lowest fees.
Can I have both a 401(k) and an IRA?
Yes — the limits are separate. You can contribute $23,500 to a 401(k) AND $7,000 to an IRA (Traditional or Roth) in 2026. This lets high earners save up to $30,500/year in tax-advantaged accounts. Some income limits apply to Roth IRA eligibility and Traditional IRA deductibility.
Reviewed by AutoWealthLab Editorial Team
This calculator and its accompanying guide are maintained by the AutoWealthLab editorial team. Every formula is verified against standard financial references, and results are cross-checked with independent calculators before publishing. Our tools are updated whenever tax rules, interest rate benchmarks, or regulatory formulas change.
Last reviewed: October 2026 · Methodology: Standard amortization and compound interest models · Learn more about our testing process