Money & Finance
401(k) Calculator
Project your 401(k) balance at retirement with monthly compounding, your employer match, and catch-up contributions, then compare what-if contribution rates side by side.
How it works
Behind the numbers
Your monthly contribution is your salary times your contribution rate, divided by twelve. The employer match is a percentage of your contribution, but only on the slice of salary your plan counts. If you earn $100,000, contribute 10%, and your employer matches 50% of the first 6%, the match is 50% of $6,000, or $3,000 a year.
Each month the calculator grows your balance by one twelfth of the annual return you entered, then adds your contribution and the match. Running that month after month is what makes the curve bend upward: later years earn returns on earlier years' returns. If you enter a catch-up contribution, it is added to your own contribution for the months you are between 50 and 63.
The what-if chart runs the same projection three times with only the contribution rate changed: your rate, three points higher, and three points lower. The cost panel does the same for a one-point gap over a fixed 30 years. Small differences in rate compound into large differences in balance, and the comparison exists to make that visible.
FAQ
Questions, answered
How much should I contribute to my 401(k)?
At least enough to collect your full employer match. Anything less leaves part of your pay unclaimed. Beyond that, a common target is 12% to 15% of pay for retirement, counting the match. Try the what-if chart above at a few rates and see what each one means for you.
What is the 401(k) contribution limit?
The IRS sets a limit on employee contributions each year and adjusts it for inflation. The limit covers your own deferrals only. Employer match counts under a separate combined limit, so check the IRS figures for the current year before you plan around a number.
Does the employer match count toward my contribution limit?
No. The elective deferral limit applies only to your own contributions. Employer matching and profit sharing fall under a separate overall limit that covers everything going into the account.
How is the projected balance calculated?
Month by month. Each month your balance grows by one twelfth of your annual return, then your contribution and the employer match are added. Repeat that until your retirement age. Later years earn returns on earlier years' returns, which is why the curve bends upward.
Should I choose Roth or Traditional?
Traditional contributions lower this year's tax bill, and you pay tax when you withdraw. Roth contributions are taxed now, and qualified withdrawals in retirement are tax-free. Use the toggle above to see what each choice costs you this year.