401(k) Calculator
Project your retirement savings with employer match, contribution limits, and compound growth
Balance at Retirement
$1,275,395
Monthly Income (4% rule)
$4,251
Your Annual Contribution
$7,500
Employer Annual Match
$3,000
Balance Over Time
Your Traditional 401(k) Summary
- • You contribute $7,500/year · Employer adds $3,000/year
- • Over 30 years at 7% return, growth accounts for $935,395
- • Traditional: contributions reduce your taxable income by $7,500/year now
Traditional vs Roth: the real trade-off
A Traditional 401(k) reduces your taxable income today, contributions come out of your paycheck before tax, but you'll pay ordinary income tax on withdrawals in retirement. A Roth 401(k) works the opposite way: contributions are taxed now, but qualified withdrawals in retirement, including all investment growth, are completely tax-free.
The right choice depends heavily on whether you expect to be in a higher or lower tax bracket in retirement than you are now. Many people split contributions between both to hedge against future tax rate uncertainty, if their plan allows it.
Getting the most from your 401(k)
Always capture the full employer match
An employer match is effectively an instant, guaranteed return on your contribution, if you're contributing less than the amount needed to get the full match, you're leaving free money on the table.
Understand vesting schedules
Some employer contributions "vest" gradually over several years of employment, check your plan documents, as leaving a job early can mean forfeiting unvested employer contributions.
Increase contributions with every raise
A simple habit of adding 1% more to your contribution rate each time you get a pay rise lets your retirement savings grow without ever feeling like a pay cut.
Watch fees on your fund choices
Expense ratios above 0.5-1% can meaningfully erode long-term returns, low-cost index funds within your plan are usually a stronger choice than actively managed funds with higher fees.
Related tools
Worked example: $80,000 salary with an employer match
You contribute 6% of $80,000, which is $4,800 a year. Your employer matches 50% of that, adding $2,400, so $7,200 goes in each year. Assuming a 7% average annual return, 30 years of those contributions grows to roughly $680,000. Returns are not guaranteed.
Frequently Asked Questions
What is the 401(k) contribution limit for 2026?
$24,500/year for those under 50. Workers 50+ can contribute $32,500 including the $8,000 catch-up contribution.
What is an employer match?
Many employers match a % of your contributions, e.g. "100% match up to 4% of salary" means they add $1 for every $1 you put in, up to 4% of your pay. It's free money.
Traditional vs Roth 401(k), which is better?
Traditional reduces your taxable income now; Roth gives you tax-free withdrawals in retirement. If you expect to be in a higher tax bracket later, Roth usually wins.
When can I withdraw from my 401(k)?
Penalty-free withdrawals begin at age 59½. Early withdrawals face a 10% penalty plus income tax. Required Minimum Distributions (RMDs) start at age 73.
What is vesting?
Employer contributions can be subject to a vesting schedule. You always keep your own contributions, but you may need to stay a set time to keep the match.
Key Terms Explained
Plain-English definitions of the financial terms used in this calculator.
- Compound Interest
- Interest earned on both your original money and on interest already added. Over long periods compounding accelerates growth dramatically, the earlier you start saving or investing, the more it works in your favour.
- Pension Contribution
- Money paid into a pension by you and your employer. Contributions get tax relief at your marginal rate, and under auto-enrolment a minimum of 8% of qualifying earnings goes in (at least 3% from your employer).
- 401(k)
- A US workplace retirement account funded from pre-tax salary, often with an employer match, free money you should rarely leave on the table. Withdrawals are taxed as income in retirement.
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Not Financial Advice: This calculator is for informational and educational purposes only. Results are estimates and do not constitute financial advice, recommendations, or regulated advice. We are not authorised or regulated by the Financial Conduct Authority (FCA). Always consult a qualified financial adviser for personalised advice. Tax treatment depends on your individual circumstances and may change. Tax laws and rates may change. Past performance does not guarantee future results.
