How this calculator works
Each year you contribute a percentage of salary, capped at the 2026 limit of $24,500 plus catch-up contributions from age 50. Your employer matches a share of what you put in, up to a percentage of salary. The balance grows at your expected return and your salary rises with your raise.
Worked example
With the example values below: Balance at 67, $2,465,064 ($168,744 of contributions came from your employer). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Current age | 30 |
| Retirement age | 67 |
| Annual salary | $85,000 |
| Your contribution | 8% |
| Employer match% of your contribution matched | 50% |
| Match up to% of salary | 6% |
| Current balance | $25,000 |
| Annual raise | 3% |
| Annual return | 7% |
How employer matching works
Many employers match part of what you contribute. A common formula is 50% of contributions up to 6% of salary, which means contributing 6% earns an extra 3%. Another is a dollar-for-dollar match up to 4%. Not contributing enough to get the full match leaves free money on the table.
Matches may vest over time, often three to six years. If you leave before you're vested, you may forfeit part of the employer money, though your own contributions are always yours.
Traditional vs. Roth 401(k)
Traditional contributions are made before tax, lowering taxable income now, and withdrawals are taxed later. Roth 401(k) contributions are made after tax, and qualified withdrawals are tax-free. If you expect a higher tax rate in retirement, Roth tends to win; if you expect a lower one, traditional does. Many people split contributions to hedge.
Starting in 2026, employees aged 50 and over who earned more than about $150,000 from their employer the prior year must make catch-up contributions as Roth.
How much a 401(k) can grow
Someone earning $75,000 who contributes 10% with a 50% match up to 6%, gets 3% raises and earns 7% a year, starting at 30 with nothing saved, could have about $1.9 million by 65. Starting at 40 instead leaves about $810,000, less than half.
Fees matter too: check your plan's fund expense ratios and favor low-cost index funds where available; the mutual fund fee calculator shows the long-term cost.
Frequently asked questions
What is the 401(k) contribution limit for 2026?
You can contribute up to $24,500 of your salary in 2026. From age 50 you can add an $8,000 catch-up contribution, and at ages 60 to 63 the catch-up rises to $11,250. Employer matching doesn't count toward your own limit.
How much should I contribute to my 401(k)?
At minimum, enough to get your employer's full match, since that's an instant return on your money. Many planners suggest saving 10% to 15% of your pay for retirement in total, counting the match.
When can you withdraw from a 401(k) without a penalty?
From age 59½. If you leave your employer in or after the year you turn 55, you can usually take withdrawals from that employer's plan without the 10% penalty. Withdrawals from a traditional 401(k) are still taxed as income either way.
How does a 401(k) work?
Contributions come out of your paycheck before tax (traditional) or after tax (Roth), are invested in the funds you choose, and grow tax-deferred. Many employers add a match. Traditional balances are taxed when you withdraw them in retirement; qualified Roth withdrawals are tax-free.
How much should I have in my 401(k) by age?
Common benchmarks for total retirement savings are about one times salary by 30, three times by 40, six times by 50 and eight to ten times by retirement. Pensions and other savings count toward these.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.