401k Contribution Calculator
Find out how much goes into your 401(k) each year after factoring in your contribution, employer match, and tax bracket. Ideal for comparing contribution scenarios before open enrollment.
Last updated: September 2026
Formula below · 2 sources (IRS, Wikipedia) · Updated Sep 2026
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About this calculator
A traditional 401(k) gives you three things each year, and this calculator adds them up. (1) Your own pre-tax contribution: annualSalary × contributionPercent / 100, capped at the 2026 IRS elective-deferral limit of $24,500 (catch-up contributions for ages 50+ are not included). (2) The employer match: employerMatch % of your contribution, counting only contributions up to matchCap % of salary: min(yourContribution, annualSalary × matchCap / 100) × employerMatch / 100. (3) Your federal income-tax savings: yourContribution × taxRate / 100, because traditional contributions are made before income tax (they still owe Social Security and Medicare tax). Total = contribution + match + tax savings. The money you actually give up from take-home pay is your contribution minus the tax savings. Maximizing contributions at least to the match cap is widely considered the highest-return move available to employees, since the match is an instant 25-100% return. Roth 401(k) contributions get the match but no current tax savings, so for a Roth election subtract the tax-savings part from the result.
How to use
Assume a $75,000 salary, 6% employee contribution, 50% employer match, 6% match cap, and a 22% tax rate. Step 1 — Employee contribution: $75,000 × 0.06 = $4,500. Step 2 — Employer match: min($4,500, $75,000 × 6%) × 50% = $2,250. Step 3 — Federal tax savings: $4,500 × 0.22 = $990. Step 4 — Total annual benefit: $4,500 + $2,250 + $990 = $7,740. The dollars deposited in the account are $4,500 + $2,250 = $6,750 a year, and your take-home pay drops by only $4,500 − $990 = $3,510.
Frequently asked questions
How does an employer 401k match actually work?
An employer match is a percentage of your own contribution, up to a cap defined as a percentage of your salary. For example, a '50% match up to 6% of salary' means if you earn $80,000 and contribute at least 6% ($4,800), your employer adds 50% of that capped amount, or $2,400. If you contribute less than 6%, the employer only matches 50% of whatever you put in. Contributing at least enough to capture the full match is critical because it is essentially free compensation. Always confirm whether the match is immediate or vests over time, as vesting schedules affect how much you keep if you leave the company.
What is the 401k contribution limit for 2026?
For 2026, the IRS allows employees to contribute up to $24,500 to a 401(k) on a pre-tax or Roth basis, up from $23,500 in 2025. Workers aged 50 and older can make an additional $8,000 catch-up contribution ($32,500 total), and those aged 60 to 63 can make an $11,250 catch-up ($35,750 total). The combined employee-plus-employer total cannot exceed $72,000 for 2026, plus any catch-up. Exceeding the employee limit means the excess must be withdrawn or it is taxed twice, so monitor contributions if you change jobs mid-year.
How much do 401k contributions reduce my taxable income?
Traditional 401(k) contributions are deducted from your gross salary before federal income taxes are calculated, directly reducing your taxable income by the contributed amount. If you contribute $6,000 and are in the 22% bracket, you save roughly $1,320 in federal income taxes that year. State income taxes may also be reduced, depending on your state's rules. Note that 401(k) contributions do not reduce FICA taxes (Social Security and Medicare), so your Social Security benefit calculation is unaffected. Roth 401(k) contributions, by contrast, are made after tax and provide no immediate tax reduction.