401(k) Calculator

Estimate your 401(k) growth with employer matching, contribution limits, and projected retirement income.

How to Use the 401(k) Calculator

What Is a 401(k)?

A 401(k) is an employer-sponsored retirement savings plan that lets you contribute a portion of your paycheck before taxes are taken out. Your money grows tax-deferred until you withdraw it in retirement.

Key Benefit: Many employers match a portion of your contributions — that's essentially free money added to your retirement savings.

Understanding Employer Match

Employer matching is the most powerful feature of a 401(k). Here's how it works:

Common Match Formulas

• 50% match up to 6%: You contribute 6% of salary, employer adds 3%
• 100% match up to 3%: You contribute 3%, employer adds 3%
• 100% match up to 6%: You contribute 6%, employer adds 6% (generous!)

Example: 50% Match Up to 6%

Salary: $75,000 | Your contribution: 6% ($4,500) | Employer adds: 3% ($2,250)

Total annual contribution: $6,750 — you get $2,250/year in free money!

Rule #1: Always contribute at least enough to get your full employer match. Not doing so is leaving free money on the table.

2025 Contribution Limits

Under Age 50

$23,500

Employee contribution limit

Age 50+

$31,000

$23,500 + $7,500 catch-up

Age 60-63

$34,750

SECURE 2.0 super catch-up

SECURE 2.0 Act: Starting in 2025, workers aged 60-63 can contribute an extra $11,250 (instead of $7,500) as a "super catch-up" contribution.

How to Use This Calculator

Enter your age and retirement age — Most people retire between 62-67
Enter your current 401(k) balance — Check your latest statement
Enter your annual salary — Your gross (pre-tax) income
Set your contribution rate — The percentage of salary you contribute
Enter employer match details — Check your plan documents for match rate and limit
Adjust growth assumptions — 7% is a common long-term average for a balanced portfolio

401(k) Optimization Tips

Always get the full employer match — it's an instant 50-100% return
Increase your contribution by 1% each year when you get a raise
Use low-cost index funds or target-date funds inside your 401(k)
Don't cash out your 401(k) when changing jobs — roll it over
Consider Roth 401(k) if you expect higher taxes in retirement
Take advantage of catch-up contributions starting at age 50

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Learn more: Read our comprehensive guide on

How to Max Out Your 401(k): Complete 2025 Guide

Learn the strategies, contribution limits, and employer matching tactics to maximize your 401(k) and accelerate your path to retirement.

Frequently Asked Questions

At minimum, contribute enough to get your full employer match — that's free money.

Beyond that, financial experts recommend saving 10-15% of your gross income for retirement (including employer match). If you're starting late, aim for 20%+.

Priority order:
1. Contribute enough for full employer match
2. Pay off high-interest debt (>7%)
3. Build emergency fund (3-6 months)
4. Increase 401(k) toward max ($23,500 in 2025)
5. Open a Roth IRA for additional tax-free growth

Pro tip: Increase your contribution rate by 1% each year when you get a raise. You'll barely notice the difference in your paycheck but it adds up to hundreds of thousands over a career.