How much should I contribute to my 401(k)?

At minimum, contribute enough to get your full employer match — that is free money. Financial advisors generally recommend saving 10–15% of your income for retirement, including employer contributions.

What is employer matching?

Many employers match a portion of your 401(k) contributions. For example, a 50% match up to 6% of salary means if you earn $75,000 and contribute $4,500 (6%), your employer adds $2,250. Not taking advantage of the match is leaving money on the table.

What annual return should I expect?

A diversified stock portfolio has historically returned about 10% per year before inflation. A 7% return is a common conservative estimate that accounts for inflation. Bond-heavy portfolios may return 4–6%.

Traditional vs Roth 401(k) — which is better?

Traditional 401(k) contributions reduce taxable income now and are taxed at withdrawal. Roth 401(k) contributions are taxed now and withdrawn tax-free. Roth is usually better if you expect to be in a higher tax bracket in retirement than today; traditional is usually better if you expect to be in a lower bracket.

What happens to my 401(k) if I leave my job?

You have four options: leave it in your former employer's plan (if allowed), roll it over into your new employer's 401(k), roll it over into an IRA, or cash it out. Cashing out before age 59½ triggers income tax plus a 10% penalty, so the first three are almost always better.

401(k) Calculator

Project your 401(k) retirement savings over time. Factor in your contributions, employer match, expected investment returns, and annual salary increases to see how your retirement nest egg will grow.

A 401(k) is the most common workplace retirement plan in the United States, and for most people it's the single largest savings vehicle they'll ever use. Money goes in pre-tax (or post-tax for Roth 401(k)s), grows tax-deferred, and most employers add a "match" — essentially free money — for every dollar you contribute, up to a limit.

This calculator projects your 401(k) balance at retirement by modeling four growth engines simultaneously: your own contributions, your employer's match, annual investment returns on the entire balance, and salary increases that scale your contributions over time. It also accounts for the IRS contribution limit, which caps how much you can put in each year.

The 2026 employee deferral limit is $23,500 ($31,000 if you're 50 or older with catch-up contributions). Employer matches do not count toward that limit, but the combined employer + employee total is capped at $70,000. Limits change annually with inflation; the most current figures are on IRS.gov.

Inputs

Current Age

Retirement Age

Annual Salary

Current 401(k) Balance

Annual Contribution

2026 limit: $23,500 (under 50) or $31,000 (50+)

Employer Match

Percentage your employer matches (e.g., 50% = 50 cents per dollar)

Match Limit (% of Salary)

Employer matches up to this % of your salary

Expected Annual Return

Expected Annual Raise

Results

Balance at Retirement

$1,518,683

Your Contributions

$210,000

Employer Contributions

$100,794

Investment Growth

$1,182,889

401(k) Growth Over Time

Sources of Growth

Year-by-Year Projection

Age	Salary	You	Employer	Growth	Balance
31	$75,000.00	$6,000.00	$2,250.00	$2,038.75	$35,288.75
32	$77,250.00	$6,000.00	$2,317.50	$2,761.33	$46,367.58
33	$79,567.50	$6,000.00	$2,387.03	$3,539.28	$58,293.88
34	$81,954.53	$6,000.00	$2,458.64	$4,376.62	$71,129.14
35	$84,413.16	$6,000.00	$2,532.39	$5,277.67	$84,939.20
36	$86,945.56	$6,000.00	$2,608.37	$6,247.04	$99,794.61
37	$89,553.92	$6,000.00	$2,686.62	$7,289.65	$115,770.88
38	$92,240.54	$6,000.00	$2,767.22	$8,410.81	$132,948.91
39	$95,007.76	$6,000.00	$2,850.23	$9,616.18	$151,415.32
40	$97,857.99	$6,000.00	$2,935.74	$10,911.82	$171,262.89
41	$100,793.73	$6,000.00	$3,000.00	$12,303.40	$192,566.29
42	$103,817.54	$6,000.00	$3,000.00	$13,794.64	$215,360.93

Last updated: April 16, 2026Reviewed by the CalcMountain editorial team

Formula

Each year, the 401(k) balance evolves as: Year-end balance = (Year-start balance + Total annual contribution) × (1 + r) Where: Total annual contribution = Employee contribution + Employer match Employee contribution = min(annualContribution, IRS limit) Employer match = min(employee% × match%, matchLimit% × salary × match%) r = Expected annual investment return Salary grows each year: Next year's salary = This year's salary × (1 + annualRaise) Example: Salary $75,000, contribution $4,500 (6%), employer matches 50% up to 6% Employer contributes 50% × $4,500 = $2,250 Total going in: $6,750/year At 7% return, that $6,750 grows to about $42,000 after 20 years Compounding accelerates as the balance grows. The final 10 years of a 35-year career typically produce more dollar growth than the first 25 combined.

How to use this calculator

Enter your current age and the age at which you plan to retire. The IRS allows penalty-free 401(k) withdrawals starting at age 59½; Social Security full retirement age is 67 for most current workers.
Enter your current annual salary (gross, pre-tax). The calculator uses this to compute the percentage you and your employer contribute.
Enter your current 401(k) balance, including any previous employer plans you have rolled over.
Enter your annual contribution in dollars. The 2026 employee limit is $23,500 (or $31,000 if you're 50+). The calculator will cap your input at the IRS limit even if you enter more.
Enter your employer's match rate and match limit. A typical plan is "50% match up to 6% of salary" — meaning if you contribute 6%, your employer adds another 3%.
Enter an expected annual return. 7% (after inflation) is a common assumption for a stock-heavy diversified portfolio. Use lower numbers (4–6%) for more conservative target-date funds, especially close to retirement.
Enter an expected annual raise to model salary growth. The U.S. average over the past two decades is roughly 3% nominal; subtract inflation for the real growth.
Review the year-by-year chart. The widening gap between contributions and total balance is the compounding effect at work.

Worked examples

Always capture the full match

Salary $75,000, employer matches 50% up to 6% of salary. Contribute 6% ($4,500/yr): employer adds $2,250 — free money. Contribute 3% ($2,250/yr): employer adds $1,125 — you left $1,125/yr on the table. Over a 30-year career at 7% return, missing half the match costs roughly $115,000 at retirement. The first rule of 401(k) saving is: contribute at least up to the full match before doing anything else with that money.

Starting at 25 vs 35

Salary $75,000, 6% contribution, 50% match up to 6%, 7% return, retire at 65. Start at age 25 (40 years): final balance ≈ $1.48M Start at age 35 (30 years): final balance ≈ $720K A 10-year delay roughly halves the outcome. The contribution amount is the same; the only difference is one extra decade of compounding.

Maxing out vs default

Salary $100,000, age 30, retire at 65, 7% return. At default 6% ($6,000/yr contribution + match): ≈ $1.1M At maxed-out $23,500 contribution + 6% match: ≈ $2.7M Maxing out costs an extra $17,500/year today but more than doubles the retirement balance. Most middle-income earners can't max out, but every extra percentage point matters more than they realize.

When to use this calculator

Use this calculator at three career checkpoints: in your 20s/30s when small changes have decades to compound, in your 40s when you're trying to catch up or course-correct, and in your 50s/60s when catch-up contributions become available and the retirement date moves into focus.

This calculator models a traditional 401(k) — pre-tax contributions, tax-deferred growth, taxed at withdrawal. For Roth 401(k) plans (after-tax contributions, tax-free withdrawals), the balance projection is identical, but the after-tax spending power differs based on your retirement tax bracket vs your current bracket.

For broader retirement modeling that includes IRAs, Social Security, and a desired retirement income, use the retirement savings calculator. For pure investment growth modeling without the salary/match structure, use the compound interest calculator.

Common mistakes to avoid

Contributing less than the full employer match. This is the single most common 401(k) mistake — leaving free money on the table to avoid contributing more of your own.
Assuming the IRS limit is constant. Limits rise most years with inflation. Don't set-and-forget a dollar amount; check annually whether you can increase it.
Confusing employer match with your contribution. The IRS limit applies only to your employee deferral. Employer match is on top of that, up to a much higher combined cap.
Using a nominal return rate while ignoring inflation. A 7% return with 3% inflation is really 4% real. Either subtract inflation up front or remember your final balance buys less than today.
Holding too much company stock. Plans that offer company-stock matches can leave employees with concentrated risk — your job AND your retirement balance are tied to one company.
Cashing out when changing jobs. A $50,000 balance cashed out at 30 incurs about $15,000 in taxes/penalties AND surrenders ~$540,000 of growth at 7% over 35 years.

Frequently Asked Questions

Sources & further reading

401(k) contribution limits — Internal Revenue Service
401(k) plan overview — U.S. Department of Labor
Investor guidance on retirement plans — U.S. Securities and Exchange Commission

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