401(k) Calculator
See how much your 401(k) will grow based on your salary, contribution rate, employer match, and years until retirement.
Annual Breakdown
Projected 401(k) Balance
At age 65 (30 years)
$1,057,308
~$3,524/mo at 4% withdrawal rate
Monthly contribution
$667
Monthly employer match
$200
Annual tax savings
$1,760
Years of growth
30 yrs
Assumes consistent contributions and returns. Tax savings use an estimated federal marginal rate. Actual results vary.
How a 401(k) Works — and Why It's So Powerful
A 401(k) is an employer-sponsored retirement savings account that lets you invest pre-tax dollars directly from your paycheck. Because contributions reduce your taxable income for the year, every dollar you put in costs you less than a dollar out of pocket. A $5,000 annual contribution in the 22% tax bracket only reduces your take-home pay by about $3,900 — the IRS absorbs the other $1,100. This triple advantage (upfront tax deduction, tax-deferred growth, and employer match) makes the 401(k) the most powerful wealth-building tool available to most Americans.
The employer match is free money. A common formula is 50% match on contributions up to 6% of salary, meaning if you earn $80,000 and contribute 6% ($4,800/year), your employer adds another $2,400. That's a guaranteed 50% return on that portion of your savings before market returns even factor in. Not contributing enough to capture the full match is leaving a portion of your compensation on the table. Always contribute at least enough to get the full match before directing savings elsewhere.
For 2026, the IRS allows employees to contribute up to $23,500 per year to a traditional or Roth 401(k). Workers aged 50 and older can contribute an additional $7,500 in catch-up contributions, raising their limit to $31,000. Employer contributions do not count toward the employee limit but are subject to a combined limit of $70,000 (employee + employer). These limits are indexed for inflation and typically increase slightly each year.
When choosing between a traditional 401(k) (pre-tax) and a Roth 401(k)(after-tax, tax-free in retirement), consider your current vs. future tax rate. If you expect to be in a higher bracket in retirement, the Roth wins. If you're in a high bracket now and expect lower income in retirement, traditional wins. Many plans allow splitting contributions between both. This calculator models the traditional 401(k) tax savings; either way, maximizing contributions beats trying to time the tax choice perfectly.
Frequently Asked Questions
How much should I contribute to my 401(k)?
At minimum, contribute enough to get the full employer match — that's the highest guaranteed return you'll find anywhere. Beyond that, most financial planners recommend saving 15% of gross income for retirement (including the employer match). If you're getting started late, aim to max out your contributions. The 2026 employee limit is $23,500 ($31,000 if you're 50 or older). Even small increases in your contribution rate compound dramatically over 20–30 years.
What happens to my 401(k) if I change jobs?
You have four options: leave it with your former employer (if allowed), roll it into your new employer's 401(k), roll it into an IRA, or cash it out. Cashing out triggers income tax plus a 10% early withdrawal penalty if you're under 59½ — almost always the worst choice. Rolling over to an IRA preserves your tax-deferred status and usually gives you more investment options. Check whether any unvested employer match is forfeited before leaving, as vesting schedules typically range from immediate to 6 years.
Can I withdraw from my 401(k) early?
You can, but it's costly. Withdrawals before age 59½ are generally subject to income tax plus a 10% penalty. Exceptions exist for disability, certain medical expenses, substantially equal periodic payments (SEPP/72(t)), and a few others. At 59½ you can withdraw freely (still subject to income tax on traditional 401(k) funds). Required Minimum Distributions (RMDs) must begin at age 73 under current law. Roth 401(k) contributions — but not earnings — can be withdrawn tax and penalty free at any time.
What is a good 401(k) rate of return?
The long-run average annual return of a diversified U.S. equity portfolio is approximately 7% after inflation (10% nominal). For a blended stock/bond portfolio, 5–7% nominal is a reasonable planning assumption. Your actual return depends on your fund selection and allocation. Minimize fees: an expense ratio difference of 0.5% costs roughly 10% of your final balance over 30 years. Index funds in most plans offer the lowest cost exposure to broad market returns.