401(k) Retirement Savings Calculator
This 401(k) calculator projects your retirement savings balance by modeling the compound growth of employee and employer contributions over time. Enter your current age, salary, contribution percentage, employer match details and expected annual return to see how your balance grows to retirement. The calculator automatically applies the 2026 IRS contribution limits: $24,500 for employee deferrals, or $32,500 if age 50 or older with catch-up contributions. A quick-answer summary shows your projected balance alongside a detailed breakdown of total employee contributions, total employer match, starting balance growth and investment gains. The results table displays annual employee and employer contributions separately, helping you understand how employer matching adds to your overall compensation. Combine this tool with our Roth vs. Traditional IRA calculator if you are also funding individual retirement accounts, or with our retirement savings calculator for a complete projection of your total retirement readiness.
Contributing 6% of a $80,000 salary from age 35 to 65 with a 50% employer match up to 6%, at 7% annual return: projected balance of $1,060,730 at retirement.
How to read the badges beside each field: Official figures come from a cited authority; Regional average and Illustrative assumption values are editable placeholders, so replace them with your own figure before you rely on the result.
How 401(k) compound growth works
A 401(k) grows through the combined effect of regular contributions and compound investment returns. Each year, both your contributions and your employer match are added to the account, and the entire balance earns a return. In subsequent years, that return itself earns a return, which is the compounding effect. Over a 30-year career, investment gains can easily exceed the total amount contributed.
The calculator uses the standard future value of an annuity formula, applied annually:
r = expected annual return / 100
n = retirement age - current age (years)
Annual employee contribution = salary x employee% / 100 (capped at IRS limit)
Annual employer contribution = salary x min(employee%, match cap%) x match rate / 100
Total annual contribution = employee + employer
FV = balance x (1 + r)^n + totalAnnual x ((1 + r)^n - 1) / r
Worked example
$50,000 starting balance, $80,000 salary, 6% employee contribution, 50% match up to 6%, 7% return, 30 years:
- Annual employee contribution = $80,000 x 6% = $4,800 (below $24,500 IRS limit)
- Employer match = $80,000 x min(6%, 6%) x 50% = $2,400
- Total annual contribution = $4,800 + $2,400 = $7,200
- r = 0.07, n = 30
- FV = 50,000 x (1.07)^30 + 7,200 x ((1.07)^30 - 1) / 0.07
- FV = 50,000 x 7.6123 + 7,200 x 94.461 = $380,613 + $680,116 = $1,060,729
Why employer matching matters
An employer match is an immediate, guaranteed return on your contribution. A 50% match on the first 6% of salary is equivalent to a 50% return on that portion of your savings before any investment growth is counted. No other investment reliably delivers that kind of immediate return.
The most common advice from retirement planning resources is to contribute at least enough to capture the full employer match before directing money anywhere else. Failing to do so is equivalent to declining part of your total compensation.
Vesting schedules can affect when employer contributions become fully yours. Some employers vest immediately; others use a graded or cliff vesting schedule over several years. Check your plan documents for your specific vesting terms.
2026 IRS 401(k) contribution limits
The IRS adjusts contribution limits annually for cost-of-living increases. The limits below are from IRS Notice 2025-67.
| Limit type | 2026 amount | Who it applies to |
|---|---|---|
| Employee elective deferral | $24,500 | All participants under age 50 |
| Catch-up contribution (age 50-59 and 64+) | $8,000 | Workers aged 50 or older (total $32,500) |
| Enhanced catch-up (age 60-63, SECURE 2.0) | $11,250 | Workers aged 60-63 only (total $35,750) |
| Combined employer + employee limit (415 limit) | $72,000 | All participants (before catch-up) |
Source: IRS, Retirement Topics: 401(k) and Profit-Sharing Plan Contribution Limits. Verified 11 July 2026.
What really moves your projected balance
The number that moves this projection most is not the return you assume, it is whether you clear the match threshold. A phrase like "50% match up to 6%" is two figures doing different jobs: the employer adds 50 cents for every dollar you contribute, but only on the first 6% of your salary. Contribute 3% and you collect half the match you were owed; contribute 10% and the extra 4% earns no match at all, only tax deferral. On an $80,000 salary that first 6% is worth $2,400 a year of employer money, which compounds to roughly $227,000 over 30 years at 7%, the highest-return dollar in the whole model.
Two default assumptions cut in opposite directions. The tool holds your salary and contribution rate flat, yet a percentage-based deferral rises automatically as your pay grows, so a real 6% saver usually finishes well above the projected figure. Pulling the other way, the 7% return is nominal and ignores inflation: a projected $1,060,730 in 2056 is worth closer to $506,000 in today's money at 2.5% inflation. Read the headline as a savings target, not future spending power.
The IRS caps rarely bind for ordinary savers. Reaching the 2026 employee limit of $24,500 would take a deferral near 31% of an $80,000 salary, and most people hit their employer's match ceiling long before the federal one. The $72,000 combined limit and the $11,250 catch-up for ages 60 to 63 matter mainly to high earners and late-career front-loaders. Remember too that a match is only yours once vested, so check whether your plan uses cliff or graded vesting before you count it.
401(k) calculator: frequently asked questions
What is the 401(k) contribution limit for 2026?
The employee elective deferral limit for 2026 is $24,500. Workers aged 50 or older can make an additional catch-up contribution of $8,000, for a total employee limit of $32,500. The combined employer-plus-employee limit is $72,000. Source: IRS Notice 2025-67 (irs.gov).
Should I contribute enough to get the full employer match?
The employer match is effectively free money added to your retirement savings. Most financial advisors recommend contributing at least enough to capture the full match before allocating money to other accounts. Leaving any portion of the employer match unclaimed means turning down a portion of your total compensation.
What happens to my 401(k) if I change jobs?
You generally have several options: leave the balance in the former employer's plan (if permitted), roll it over to your new employer's 401(k) plan, or roll it over to a traditional IRA. The IRS publishes rollover rules and options at irs.gov. Cashing out early typically triggers income tax and a 10% early-withdrawal penalty.
What is a Roth 401(k)?
A Roth 401(k) accepts after-tax contributions, meaning withdrawals in retirement are generally tax-free. A traditional 401(k) accepts pre-tax contributions, which reduces taxable income today but withdrawals are taxed as ordinary income in retirement. The same annual IRS contribution limits apply to both account types.
Official sources
- IRS, 401(k) contribution limits 2026: IRS, Retirement Topics: 401(k) and Profit-Sharing Plan Contribution Limits .
- IRS Notice 2025-67 (2026 cost-of-living adjustments): IRS newsroom, 401(k) limit increases to $24,500 for 2026 .
Reviewed by the CalculatorHub team, edited by James Graham, 11 July 2026. See our methodology. General information, not financial advice.