Free 401(k) calculator. Estimate your retirement savings with employer match, contribution limits, growth projections, and Roth vs Traditional comparison.
The 401(k) Calculator helps you project how your employer-sponsored retirement account will grow over time, factoring in your contributions, employer matching, investment returns, and IRS contribution limits. Whether you're just starting your career or nearing retirement, understanding the power of consistent 401(k) contributions — especially when paired with an employer match — is essential for retirement planning.
A 401(k) plan is one of the most powerful wealth-building tools available to American workers. Contributions reduce your taxable income (Traditional) or grow tax-free (Roth), and many employers match a percentage of your contributions — essentially free money. The 2026 contribution limit is $24,000 for those under 50, with an additional $7,500 catch-up contribution for workers aged 50 and older.
Use this calculator to see exactly how much your 401(k) will be worth at retirement, how much your employer match adds to your total, and how different contribution rates affect your final balance. The growth projection table and contribution rate comparison make it easy to find the optimal savings strategy for your situation.
Many employees leave free money on the table by not contributing enough to capture their full employer match. This calculator shows the dramatic impact of employer matching over decades of compounding. It also helps you determine if you're on track for retirement and whether a Traditional or Roth 401(k) is better for your tax situation.
Employee Contribution = Salary × Contribution % Employer Match = min(Salary × Match Cap, Salary) × Match % Total Annual = Employee Contribution + Employer Match Future Value = Current Balance × (1 + r)^n + Annual Contribution × ((1 + r)^n − 1) / r where r = annual return rate, n = years to retirement
Result: $12,750/yr employee + $3,400 employer match = $16,150/yr total → ~$2,170,000 at retirement
With a $85,000 salary, 15% contribution ($12,750/yr), and 100% employer match on the first 4% ($3,400/yr), your combined $16,150 annual contribution grows to approximately $2.17 million over 35 years at 7% annual returns. The employer match alone contributes over $280,000 of that total.
Employer matching is the cornerstone benefit of a 401(k) plan. Even a modest 50% match on the first 6% of salary adds up to tens of thousands of dollars in free money over a career. An employee earning $85,000 with this match receives $2,550 in free employer contributions each year — compounding at 7% for 30 years, that employer match alone grows to over $240,000.
The Traditional vs Roth decision depends primarily on your current tax rate versus your expected retirement tax rate. If you are in a high tax bracket now and expect lower income in retirement, Traditional contributions provide an immediate tax break. If you are early in your career with a lower salary and expect higher income later, Roth contributions lock in today's lower rate and provide tax-free withdrawals. Many advisors recommend splitting contributions between both for tax diversification.
In your 20s and 30s, consider an aggressive allocation (80-90% stocks) since you have decades for recovery from market downturns. In your 40s, shift to 60-70% stocks with more bonds for stability. Approaching retirement in your 50s and 60s, move toward 40-50% stocks to protect your accumulated wealth. Target-date funds automatically adjust this allocation for you based on your expected retirement year.
A 401(k) is an employer-sponsored retirement savings plan. You contribute a percentage of your pre-tax salary (Traditional) or after-tax salary (Roth), and the money grows tax-deferred. Many employers match a portion of your contributions.
For 2026, the employee contribution limit is $24,000 for those under 50 and $31,500 for those 50 and older (includes $7,500 catch-up contribution). The total combined employer + employee limit is $70,000.
An employer match means your company contributes additional money when you contribute. For example, a 50% match on 6% means if you contribute 6% of salary, your employer adds 3%. Always contribute at least enough to get the full match — it is a 50-100% instant return on investment.
Traditional 401(k) contributions are pre-tax, reducing your taxable income now but taxed at withdrawal. Roth 401(k) contributions are after-tax, so you pay taxes now but withdrawals in retirement are tax-free. Choose Roth if you expect higher tax rates in retirement.
You can roll your 401(k) into your new employer plan or into an IRA without paying taxes. Leaving it in a former employer plan is also an option, but avoid cashing out — you will pay income tax plus a 10% early withdrawal penalty if under 59½.
Financial advisors recommend saving 15-20% of gross income for retirement. At minimum, contribute enough to get your full employer match. If you can afford more, max out the annual limit for maximum tax-advantaged growth.
Workers aged 50 and older can contribute an additional $7,500 per year above the standard 401(k) limit. This catch-up provision helps those who started saving later or want to accelerate their retirement savings.