Where your 401(k) balance comes from
Your contributions, the employer match, and investment growth. Updates as you change the inputs.
Home / Financial Calculators / 401K Calculator
Retirement & Tax
401K Calculator
Model how your 401K balance grows with salary contributions, employer matching, and long-term investment returns.
Projected 401K balance
$823,000
Employee contributions$200,000
Employer match$100,000
Investment growth$523,000
Avg annual return7.0%
What is a 401(k)?
A 401(k) is an employer-sponsored retirement plan that lets you set aside part of your paycheck into an investment account that grows tax-advantaged over time. Many employers add a matching contribution on top of what you put in, which is one of the most valuable perks in retirement saving. This calculator projects how your balance grows from your contributions, the match, and long-term investment returns.
How it works
Each year you contribute a percentage of your salary, your employer adds a match up to a cap (this tool assumes a match on contributions up to 6% of salary), and the combined amount is invested at an assumed average annual return. The account compounds month over month, so contributions made earlier grow the most.
FV = PMT × [ ((1 + r)^n − 1) / r ] × (1 + r)
FV = future balance
PMT = combined monthly contribution (yours + employer match)
r = monthly return (annual return ÷ 12)
n = number of months invested (years × 12)
FV = future balance
PMT = combined monthly contribution (yours + employer match)
r = monthly return (annual return ÷ 12)
n = number of months invested (years × 12)
Worked example
On a $100,000 salary, contributing 8% with a 50% employer match (up to 6% of salary), at a 7% annual return over 25 years:
| Item | Amount |
|---|---|
| Your contributions | $200,000 |
| Employer match | $75,000 |
| Investment growth | ~$465,000 |
| Projected balance at retirement | ~$740,000 |
Tips for a bigger balance
- Contribute at least enough to capture the full employer match, it is effectively free money and an instant return.
- Increase your contribution rate by 1% each year, small raises are barely noticeable in your paycheck but compound significantly.
- Start early, an extra decade of compounding often matters more than a higher contribution later.
- Revisit your assumed return periodically and test a conservative rate so your plan isn't built on optimistic markets.
Frequently asked questions
What is a 401(k)?
An employer-sponsored retirement account you fund from your salary, before or after tax. The money is invested and grows tax-advantaged until you withdraw it in retirement.
Should I contribute enough to get the full employer match?
Usually yes. A match is an immediate, guaranteed return on your contribution, one of the strongest returns available in retirement planning.
How does the employer match work?
A common match is 50% of your contributions up to 6% of salary. The match is added alongside your own contribution and is invested and compounds too.
How much will my 401(k) be worth at retirement?
It depends on your contribution rate, the match, years invested, and average return. This calculator combines all of those into one projected balance.
Is the expected return realistic?
It uses the average annual return you enter. Real returns vary year to year, so treat the result as a planning estimate and test a range of rates.
What are the contribution limits?
The IRS sets an annual employee limit with a catch-up amount from age 50. Employer match does not count toward your limit, check the current year's IRS figures.