401(k) Calculator
Project your 401(k) balance at retirement, including employer match
This 401(k) calculator projects your retirement account balance based on your current savings, contribution rate, employer match, expected salary growth, and investment returns until your target retirement age.
Your 401(k) Details
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Balance at Retirement
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Total Growth
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You Contributed
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Employer Match
$0
Growth Projection
Years to Retirement0
This Year's Contribution (You)$0
This Year's Employer Match$0
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📖 401(k) Basics — Employer Match, Limits & Growth
A 401(k) is an employer-sponsored retirement account that lets you contribute a portion of your paycheck before it's taxed (traditional) or after tax with tax-free withdrawals later (Roth), invest that money in the market, and — in many plans — receive free matching contributions from your employer. The combination of pre-tax growth, employer match, and decades of compounding makes it one of the most powerful retirement tools available to most workers.
Why the Employer Match Is "Free Money"
A common match structure is "50% up to 6%" — meaning your employer contributes 50 cents for every dollar you contribute, up to a contribution of 6% of your salary. On a $70,000 salary, contributing the full 6% ($4,200/year) gets you an extra $2,100/year from your employer — an instant 50% return before any market growth at all. Contributing less than the match threshold effectively leaves part of your compensation on the table.
Employer Match = min(Your Contribution %, Match Limit %) × Match Rate
2025 IRS Contribution Limits
| Category | 2025 Limit |
|---|---|
| Employee elective deferral (under 50) | $23,500 |
| Catch-up contribution (age 50+) | +$7,500 ($31,000 total) |
| Combined employee + employer limit | $70,000 (or 100% of compensation, if lower) |
These limits apply to your own elective deferrals — employer match contributions don't count against your personal $23,500 limit, but they do count toward the combined $70,000 cap. Very few savers hit the combined limit; the employee deferral limit is the one that matters for most people.
Worked Example: 30 to 65, $70,000 Salary
Starting with a $20,000 balance, contributing 6% of a $70,000 salary (with 3% annual raises), a 50%-up-to-6% employer match, and a 7% average annual return over 35 years:
| Component | Approximate Total |
|---|---|
| Your contributions | ~$225,000 |
| Employer match | ~$113,000 |
| Investment growth | ~$1,100,000+ |
This illustrates the same pattern true of all long-horizon retirement accounts: investment growth, not contributions, ends up being the largest single component of the final balance — which is exactly why starting early and staying invested matters more than trying to time the market.
Traditional vs Roth 401(k)
| Traditional 401(k) | Roth 401(k) | |
|---|---|---|
| Contributions | Pre-tax (reduces taxable income now) | After-tax (no deduction now) |
| Withdrawals in retirement | Taxed as ordinary income | Tax-free (if qualified) |
| Best if you expect... | Lower tax bracket in retirement | Higher tax bracket in retirement |
💡 At minimum, contribute enough to capture your full employer match — it's an immediate, guaranteed return that no investment strategy can reliably beat. Beyond the match, increasing your contribution rate by 1% whenever you get a raise is a painless way to accelerate savings without feeling a change in take-home pay.
📚 Data Sources
- 2025 employee elective deferral limit ($23,500) and combined employee+employer limit ($70,000): IRS Notice 2024-80
- Catch-up contribution rules (age 50+ and the SECURE 2.0 age 60–63 enhanced catch-up): IRS.gov — Catch-Up Contributions
Contribution limits are set annually by the IRS and adjusted for inflation. Confirm current-year limits at IRS.gov before making contribution decisions.
❓ Frequently Asked Questions
How much should I contribute to my 401(k)?
At minimum, contribute enough to get your full employer match — it's an immediate, guaranteed return. Beyond that, many financial planners suggest working toward 10–15% of your salary (including employer match) for a comfortable retirement, though your specific target depends on your age, existing savings, and retirement goals.
What is a 401(k) employer match?
An employer match is free money your company contributes to your 401(k) based on how much you contribute. A common formula is 50% up to 6% — your employer adds 50 cents for every dollar you contribute, up to a contribution of 6% of your salary. Not contributing enough to get the full match means giving up part of your compensation.
What is the 401(k) contribution limit for 2025?
For 2025, the employee elective deferral limit is $23,500 for those under 50, and $31,000 for those 50 and older (including a $7,500 catch-up contribution). Employer match contributions don't count against this personal limit.
Traditional or Roth 401(k) — which is better?
A Traditional 401(k) gives you a tax deduction now and taxes withdrawals in retirement — better if you expect to be in a lower tax bracket later. A Roth 401(k) is funded with after-tax money but grows and withdraws tax-free — better if you expect to be in a higher bracket in retirement. Many people split contributions between both to hedge against future tax-rate uncertainty.
What happens to my 401(k) if I change jobs?
You generally have four options: leave it with your former employer's plan (if allowed), roll it into your new employer's 401(k), roll it into an IRA, or cash it out (triggering taxes and, if you're under 59½, typically a 10% early withdrawal penalty). Rolling over to an IRA or new 401(k) is usually the best way to avoid taxes and penalties while keeping the money invested.
How accurate are the results from this calculator?
This calculator gives you a mathematically precise estimate based on the numbers you enter. Real-world results can differ due to fees, rate changes, taxes, or other factors not captured in a simplified formula — treat the output as a planning estimate, not financial, tax, or legal advice.
Is this calculator free to use?
Yes. Every calculator on FinCalc is completely free, with no signup, subscription, or paywall required.
Does this calculator store or share my data?
No. All calculations run locally in your browser — nothing you type is sent to or stored on a server.