A 401(k) Calculator estimates how much your workplace retirement account could be worth when you retire, based on your salary, contribution rate, employer match, current balance and expected return. This page also shows what an early withdrawal would really cost and which contribution rate captures your full employer match. It is useful for anyone choosing a savings rate or checking whether they are on track.
How to use it
- Enter your age, salary, current balance, contribution percentage and your employer’s match and match limit.
- Set your retirement age, life expectancy, salary growth, expected return and inflation.
- Click Calculate to see your projected balance, total contributions, investment growth and an estimated monthly income in retirement.
How does a 401(k) work?
With a traditional 401(k), you contribute from your paycheck before income tax, the investments grow tax-deferred, and you pay income tax when you withdraw in retirement. A Roth 401(k) works the other way round: you contribute after tax and qualified withdrawals are tax-free. Many employers add a matching contribution.
401(k) Contributions and Employer Match
Regular contributions can make a significant difference in long-term retirement savings because both new contributions and investment earnings can accumulate over many years. An employer match can increase the amount added to the account, although matching rules vary between employers and plans.
401(k) Investment Growth
The money in a 401(k) is commonly invested in options such as mutual funds, index funds, ETFs, stocks, bonds, and other investments available through the plan. The actual growth depends on investment performance, contribution amounts, fees, and the length of time the money remains invested.
401(k) formula
FV = B × (1 + r)^n + C × [((1 + r)^n − 1) ÷ r]
where B is your current balance, C is the yearly contribution (yours plus the employer match), r is the yearly return and n is the number of years. The calculator goes further by raising your salary each year.
Example
You are 35, earn $60,000, contribute 6% ($3,600) and your employer adds 3% ($1,800). That is $5,400 a year. With no salary growth, a $20,000 starting balance and a 7% return, after 30 years you would have about $20,000 × 1.07^30 + $5,400 × 94.46 ≈ $152,000 + $510,000 = about $662,000.
2026 401(k) contribution limits
- Employee deferral limit: $24,500
- Catch-up for age 50 and older: $8,000 (total $32,500)
- Higher catch-up for ages 60 to 63: $11,250 (total $35,750)
(2026, source: irs.gov)
Early 401(k) Withdrawals
401(k) savings are generally designed to help fund retirement, so withdrawing money before age 59½ may result in income taxes and an additional early withdrawal penalty, depending on the circumstances. Early withdrawals can also reduce the amount of money available for future investment growth, which may have a noticeable effect on long-term retirement savings.
Before taking money out of a 401(k), it is important to consider both the immediate tax impact and the potential loss of future growth. Certain situations may qualify for exceptions to the additional penalty, so the rules of your specific retirement plan and applicable tax regulations should be reviewed before making a withdrawal.
Frequently Asked Questions
A 401(k) Calculator estimates future retirement savings using information such as your current balance, contributions, employer match, expected return, and years until retirement.
The right contribution depends on your income, expenses, retirement goals, and employer plan. If your employer provides matching contributions, contributing enough to receive the available match can be an important part of a retirement strategy.
Yes. Employer contributions add money to your retirement account and can increase the amount available for investment growth over time. Matching formulas and limits vary by employer.
Depending on the plan rules, you may be able to leave the money in your former employer’s plan, roll it into a new employer’s 401(k), roll it into an IRA, or take a distribution subject to applicable taxes and penalties.
You can defer up to $24,500 of salary in 2026. If you are 50 or older you can add an $8,000 catch-up, and if you are 60 to 63 the catch-up is $11,250 instead. Employer contributions are on top of these limits, within the plan’s overall cap.
Disclaimer: This calculator gives estimates for general information only. It is not financial, tax or legal advice. Results depend on the numbers you enter and on simplified assumptions, so your actual figures may differ. Check important decisions with a qualified professional or the official source.
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