401(k) Retirement Calculator
Projects your 401(k) balance at retirement by combining your current balance, salary contributions, and employer matching, compounded over time. Use it when evaluating how contribution rate changes affect your final nest egg.
Last updated: September 2026
Formula below · 3 sources (IRS, dol.gov, Wikipedia) · Updated Sep 2026
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About this calculator
A 401(k) grows through two engines: the compound growth of your existing balance and the future value of an annuity formed by ongoing contributions. The formula is: FV = currentBalance × (1 + r)^n + (salary × (contribution% + employerMatch%) / 100) × ((1 + r)^n − 1) / r, where r = annualReturn / 100 and n = retirementAge − currentAge. The first term shows how your current balance grows untouched. The second term treats your total annual contributions (your share, capped at the 2026 IRS limit of $24,500, plus the employer match) as equal payments invested at the end of each year; salary raises are not modeled. With a 0% return the contributions are simply added up. Employer matching is essentially a 50–100% instant return on your contribution, making it critical to contribute at least enough to capture the full match. The result is a pre-tax nominal balance; actual purchasing power will depend on inflation and the taxes owed upon withdrawal.
How to use
Assume you are 35, plan to retire at 65, have a current balance of $30,000, earn $70,000 per year, contribute 6% of salary, receive a 3% employer match, and expect a 7% annual return. n = 30, r = 0.07. Lump-sum growth: $30,000 × (1.07)^30 = $228,368. Annual contribution: $70,000 × (6% + 3%) = $6,300. Annuity: $6,300 × ((1.07)^30 − 1) / 0.07 = $6,300 × 94.461 = $595,102. Total projected 401(k) balance ≈ $823,470 at retirement.
Frequently asked questions
How does employer 401(k) matching work and why is it important to maximize it?
Employer matching means your company contributes an additional amount to your 401(k) based on how much you contribute, up to a set limit — for example, 100% match on the first 3% of salary or 50% match on the first 6%. This is effectively free money added to your retirement account, representing an instant 50–100% return on the matched portion before any market growth occurs. Failing to contribute enough to capture the full match means leaving part of your compensation on the table. Most financial advisors consider maximizing the employer match the single highest-priority step in any retirement savings strategy.
What is the 401(k) contribution limit for 2026 and how does it affect my retirement balance?
For 2026, the IRS limits employee 401(k) contributions to $24,500, with an additional $8,000 catch-up contribution for those aged 50 and older (total $32,500) and an $11,250 catch-up for ages 60 to 63 (total $35,750). Employer contributions, including matching, can bring the combined total to $72,000 plus any catch-up. Contributing the maximum each year significantly accelerates balance growth because more money is invested and compounding for longer. Even increasing your contribution rate by 1–2 percentage points of salary each year can add tens of thousands of dollars to your final balance over a 30-year horizon.
What annual return rate should I use when projecting my 401(k) balance?
A commonly used assumption is 6–7% per year for a diversified portfolio of stocks and bonds, reflecting long-term historical averages after inflation is partially considered. Aggressive stock-heavy allocations have historically averaged closer to 10% nominally, while conservative bond-heavy portfolios return 3–5%. The appropriate rate depends on your asset allocation, which should typically shift toward more conservative holdings as you approach retirement. Most financial planning tools use 6% or 7% as a middle-ground estimate, and it is wise to also model a pessimistic scenario at 4–5% to ensure your retirement plan is resilient to below-average market returns.