401(k) Calculator
401(k) Calculator projects your retirement savings based on salary, contribution rate, employer match, and investment returns. See the power of matching contributions and how maxing out your 401(k) accelerates wealth.
Your 401(k) Details
Growth Over Time
Year-by-year stacked chart showing your contributions (teal), employer match (blue), and investment growth (purple).
Max-Out Scenario
Traditional 401(k)
- Pre-tax contributions
- Lower taxable income now
- Pay taxes on withdrawals
Roth 401(k)
- After-tax contributions
- No upfront tax benefit
- Tax-free withdrawals
Year-by-Year Breakdown
Detailed annual progression of your 401(k).
| Year | Age | Your Contrib | Employer Match | Growth | Balance |
|---|
How 401(k)s Work
A 401(k) is a retirement savings plan offered by employers. You contribute a percentage of your paycheck, and in many cases, your employer matches a portion of your contributions. The money grows tax-deferred until retirement.
Employer Match
Your employer may match a percentage of your contributions up to a certain limit. For example, a 50% match up to 6% of salary means if you contribute 6%, your employer adds 3% more. Always contribute enough to get the full match -- it is free money.
Contribution Limits
For 2025, you can contribute up to $23,500 per year (under 50) or $31,000 (age 50+). These limits apply to your contributions only. Employer match does not count against this limit, so your total account can receive even more.
Vesting
Your contributions are always 100% yours. Employer match may be subject to a vesting schedule, meaning you need to stay with the company for a certain number of years to keep the full match. Check your plan details for vesting rules.
Investment Growth
Your 401(k) balance grows through contributions and investment returns. Historically, the S&P 500 has returned about 10% annually, but past performance does not guarantee future results. Conservative projections use 6-8% for long-term growth.
2025 Contribution Limits
| Category | Limit |
|---|---|
| Employee contribution (under 50) | $23,500 |
| Catch-up contribution (age 50+) | $7,500 |
| Total employee limit (age 50+) | $31,000 |
| Total contribution limit (employee + employer) | $69,000 |
| Total limit with catch-up (age 50+) | $76,500 |
Worked Examples
Example 1: Getting the Full Match
Salary: $80,000. Employer match: 50% up to 6% of salary.
You contribute 6% = $4,800/year. Employer adds 50% of that up to 6% of salary = $2,400/year.
Total annual contribution: $7,200.
Example 2: Maxing Out Under 50
Salary: $120,000. You contribute the max $23,500/year.
Employer matches 50% up to 6% of salary: 6% = $7,200, so match = $3,600/year.
Total annual contribution: $27,100.
Example 3: Age 50+ Catch-Up
Age 52, retiring at 67. Salary: $150,000. Max contribution: $31,000/year (includes $7,500 catch-up).
Employer match: 100% up to 4% of salary = $6,000/year.
Total annual contribution: $37,000.
Frequently Asked Questions
What is a 401(k)?
A 401(k) is an employer-sponsored retirement savings plan that allows you to contribute pre-tax dollars from your paycheck. Your contributions reduce your taxable income for the year, and the money grows tax-deferred until you withdraw it in retirement. Many employers offer matching contributions, which is essentially free money added to your account.
What is the 401(k) contribution limit for 2025?
For 2025, the contribution limit is $23,500 if you are under 50. If you are 50 or older, you can make an additional catch-up contribution of $7,500, for a total of $31,000. These limits apply to employee contributions only and do not include employer match.
How does employer matching work?
Employer match is a percentage of your contribution that your employer adds to your 401(k). For example, a 50% match up to 6% of salary means your employer contributes $0.50 for every $1.00 you contribute, but only up to 6% of your salary. If you earn $100,000 and contribute 6% ($6,000), your employer adds $3,000. Matching contributions do not count against your $23,500 contribution limit.
Should I max out my 401(k)?
Maxing out your 401(k) depends on your financial situation. At minimum, you should contribute enough to get the full employer match -- it is free money with an instant 50-100% return. Beyond that, maxing out accelerates retirement savings and reduces current taxable income. However, if you have high-interest debt or lack an emergency fund, those may be higher priorities.
What is the difference between Traditional and Roth 401(k)?
Traditional 401(k) contributions are pre-tax, lowering your taxable income today but taxed upon withdrawal in retirement. Roth 401(k) contributions are after-tax, meaning no tax deduction now, but withdrawals are tax-free in retirement. Traditional makes sense if you expect lower taxes in retirement. Roth is better if you expect higher taxes later or want tax-free growth.
How much should I contribute to my 401(k)?
Start by contributing at least enough to get the full employer match. Financial experts often recommend saving 10-15% of your income for retirement. If you are starting late or want to retire early, aim higher. Use this calculator to see how different contribution rates affect your long-term balance.
Related Tools
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- Retirement Savings Calculator — estimate how much you need to retire
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- Paycheck Calculator — see take-home pay after 401(k) deductions
- Net Salary Calculator — calculate net income after all deductions
Privacy & Limitations
- Client-side only. No data is sent to any server. No cookies, no tracking of values entered. All calculations run in your browser using JavaScript.
- Assumes constant salary and returns. Real-world salaries and investment returns vary. This calculator uses fixed rates for estimation purposes.
- Does not account for inflation. Future purchasing power will be lower than nominal dollar amounts shown. Adjust expected returns downward to model real (inflation-adjusted) growth.
- Employer match details vary. Some employers match on a per-paycheck basis, others annually. Vesting schedules and match formulas differ by company. Check your plan documents for specifics.
- Not financial advice. This tool is educational. Consult a qualified financial professional for personalized retirement planning advice.
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401(k) Calculator FAQ
What is a 401(k)?
A 401(k) is an employer-sponsored retirement savings plan that allows you to contribute pre-tax dollars from your paycheck. Your contributions reduce your taxable income for the year, and the money grows tax-deferred until you withdraw it in retirement. Many employers offer matching contributions, which is essentially free money added to your account.
What is the 401(k) contribution limit for 2025?
For 2025, the contribution limit is $23,500 if you are under 50. If you are 50 or older, you can make an additional catch-up contribution of $7,500, for a total of $31,000. These limits apply to employee contributions only and do not include employer match.
How does employer matching work?
Employer match is a percentage of your contribution that your employer adds to your 401(k). For example, a 50% match up to 6% of salary means your employer contributes $0.50 for every $1.00 you contribute, but only up to 6% of your salary. If you earn $100,000 and contribute 6% ($6,000), your employer adds $3,000. Matching contributions do not count against your $23,500 contribution limit.
Should I max out my 401(k)?
Maxing out your 401(k) depends on your financial situation. At minimum, you should contribute enough to get the full employer match -- it is free money with an instant 50-100% return. Beyond that, maxing out accelerates retirement savings and reduces current taxable income. However, if you have high-interest debt or lack an emergency fund, those may be higher priorities.
What is the difference between Traditional and Roth 401(k)?
Traditional 401(k) contributions are pre-tax, lowering your taxable income today but taxed upon withdrawal in retirement. Roth 401(k) contributions are after-tax, meaning no tax deduction now, but withdrawals are tax-free in retirement. Traditional makes sense if you expect lower taxes in retirement. Roth is better if you expect higher taxes later or want tax-free growth.
How much should I contribute to my 401(k)?
Start by contributing at least enough to get the full employer match. Financial experts often recommend saving 10-15% of your income for retirement. If you are starting late or want to retire early, aim higher. Use this calculator to see how different contribution rates affect your long-term balance.