401(k) Retirement Calculator
Project the future value of your 401(k) from your current balance, salary, contribution rate, and employer match. Shows how matched contributions and compounding build retirement wealth.
Last updated: May 2026
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About this calculator
This calculator projects your 401(k) balance at retirement by combining the growth of your current balance with the growth of your ongoing annual contributions, including the employer match. The current balance compounds forward at Current Balance × (1 + r)^t, where r is the Annual Return as a decimal and t is the Years to Retirement. Your yearly contribution is the salary times the combined employee Contribution Rate plus Employer Match percentage, and that stream grows as an annuity: contribution × ((1 + r)^t − 1) / r. Adding the two gives the projected Retirement Balance. The employer match is the standout feature — it is effectively free money and an immediate, guaranteed return on your contributions, which is why financial advisers almost universally recommend contributing at least enough to capture the full match. Over decades, the combination of pre-tax contributions, the match, and tax-deferred compounding makes the 401(k) one of the most powerful wealth-building tools available. Edge cases: a higher return assumption dramatically increases the projection because of the long horizon, and starting with a larger balance or contributing more both lift the result, though contributions usually dominate early and growth dominates later. The model assumes a constant return, a fixed salary, and steady contributions; in reality salaries rise (increasing contributions), returns vary, and contribution limits set by the IRS cap how much you can add each year. The figure is nominal and pre-tax, so traditional 401(k) withdrawals will be taxed as income in retirement.
How to use
Example 1 — $50,000 balance, $80,000 salary, 6% contribution, 3% match, 30 years, 7% return. Enter Current Balance = 50000, Annual Salary = 80000, Contribution Rate = 6, Employer Match = 3, Years to Retirement = 30, Annual Return = 7. The projected balance is about $1,060,730.41. Verify: your $50,000 grows to roughly $380,600, and the $7,200 a year in combined contributions (9% of $80,000) compounds to the rest — the match alone contributes a meaningful share. Example 2 — $20,000 balance, $60,000 salary, 10% contribution, 4% match, 25 years, 6% return. Enter 20000, 60000, 10, 4, 25, 6. The projected balance is about $546,699.32. Verify: a higher contribution rate (14% combined) offsets the lower starting balance and shorter horizon, showing how contribution rate drives the outcome.
Frequently asked questions
Why is the employer match so important?
An employer match is essentially free money — your employer contributes additional funds based on what you put in, often 50% or 100% of your contributions up to a percentage of your salary. Capturing the full match is an immediate, guaranteed return that no investment can reliably match; failing to contribute enough to get it leaves part of your compensation on the table. Over a career, the matched contributions and their compounded growth can add hundreds of thousands of dollars to your balance. This is why the near-universal advice is to contribute at least enough to receive the entire match before prioritizing other savings. It is the closest thing to a free lunch in personal finance.
How much should I contribute to my 401(k)?
At a minimum, contribute enough to capture your full employer match, because anything less forfeits free money. Beyond that, many advisers suggest aiming for 10–15% of your salary including the match, increasing over time as your income grows. The IRS sets an annual contribution limit that caps how much you can add, and there are higher catch-up limits once you reach age 50. The right amount depends on your retirement goals, other savings, and budget, but more is generally better given the tax advantages and compounding. Even small increases each year, such as bumping your rate by 1% annually, add up substantially.
What is the difference between a traditional and Roth 401(k)?
A traditional 401(k) is funded with pre-tax dollars, lowering your taxable income now, but withdrawals in retirement are taxed as ordinary income. A Roth 401(k) is funded with after-tax dollars, so there is no upfront deduction, but qualified withdrawals in retirement are tax-free. The better choice depends on whether you expect your tax rate to be higher now or in retirement: Roth favors those who expect higher future rates, traditional favors those who expect lower ones. This calculator projects a pre-tax balance, so a traditional account's real spendable value is lower after taxes, while a Roth's is closer to the figure shown. Many people split contributions between both to hedge.
Does this projection account for taxes and contribution limits?
No — it shows a nominal, pre-tax projection and does not enforce the IRS annual contribution limit, so make sure your assumed contributions stay within the legal maximum. For a traditional 401(k), the displayed balance will be reduced by income tax when you withdraw it in retirement, so its real spendable value is lower. It also assumes a fixed salary, whereas raises would increase your dollar contributions over time and lift the result. And it ignores inflation, so the future balance buys less than the same number today. Treat it as a gross estimate and refine with tax assumptions and your plan's specific limits.
When should I NOT rely on this calculator?
It assumes a constant annual return and a fixed salary, so it cannot capture market volatility, the sequence of returns, or the salary growth that would raise your contributions over a career. It does not model the IRS contribution limits, vesting schedules for employer matches, fees, or loans against the balance, all of which affect the real outcome. Because it ignores taxes and inflation, the nominal figure overstates both your spendable wealth and its purchasing power. It also does not include other retirement income like Social Security or IRAs. Use it to understand how contribution rate, match, and time drive growth, then build a complete plan with realistic tax and inflation assumptions.