401(k) Contribution Calculator
A 401(k) combines three powerful forces: your contributions, your employer’s match, and decades of compounding. This calculator projects your balance at retirement and shows how much of it is free moneyfrom your employer’s match.
How this calculator works
Your yearly contribution is a percentage of salary:
your contribution = salary × your %
The employer match is typically expressed as “X% of your contribution, up to Y% of salary.” A common example is 50% match up to 6%. We compute it as:
employer match = salary × min(your %, match limit %) × match rate %
The combined amount is then invested and compounded monthly over your years to retirement using the future-value-of-an-annuity formula, with monthly return r over n months:
FV = PMT · ((1 + r)ⁿ − 1) ÷ r
Always capture the full match
An employer match is an immediate, guaranteed return on your money — contributing less than the limit leaves free money on the table. Try raising your contribution to the match limit and watch the employer total jump.
Learn more
- Roth vs Traditional: Which Retirement Account Wins? — Pay tax now or later? Understand how Roth and Traditional accounts differ, and the simple question that decides which is better for you.
- The Time Value of Money: Why Starting Early Beats Saving More — Compounding rewards time more than effort. See why a head start can outweigh much larger contributions made later — and what that means for you.
- Where Does Your Paycheck Go? Understanding Take-Home Pay — Gross pay is never what lands in your account. A clear breakdown of federal tax, FICA, state tax, and the pre-tax deductions that shrink — and grow — your money.
- How Much Should You Save? A Practical Framework — From the 50/30/20 rule to retirement targets, a grounded way to set a savings rate you can actually sustain — and where each dollar should go first.
- Investing Basics: How to Start Growing Your Money — A jargon-free primer on why investing beats saving alone, what compound growth really does, and the simple, low-cost way most people get started.
- The HSA: The Most Tax-Advantaged Account You're Not Using — A Health Savings Account offers a rare triple tax advantage — and can double as a stealth retirement account. How HSAs work, who qualifies, and how to use one well.
Frequently asked questions
- What does '50% match up to 6%' mean?
- Your employer adds 50 cents for every dollar you contribute, but only on the first 6% of your salary. To get the full match, you'd contribute at least 6% — anything less forfeits part of the free money.
- Does this account for contribution limits?
- No — the IRS caps annual 401(k) contributions, and the limit changes yearly. This is a simplified projection; very high contribution percentages on a high salary may exceed the legal limit in practice.
- Is the projected balance guaranteed?
- No. It assumes a steady average return, but real markets fluctuate, and it ignores taxes on withdrawal and inflation. Treat it as an illustration of how contributions plus matching plus compounding add up, not a promise.