401K Calculator

Your 401(k) is one of the most powerful wealth-building tools available — especially when your employer matches contributions. This calculator shows exactly how much your 401(k) will be worth at retirement, including the employer match you should never leave on the table.

How to Use This Calculator

1. Enter your current 401(k) balance.
2. Enter your annual salary and contribution percentage.
3. Enter your employer match (e.g., 100% match up to 5% of salary).
4. Enter the expected annual return (7%–8% is typical for a diversified 401k).
5. Enter your current age and retirement age.
6. Click Calculate to see your projected balance and the impact of the employer match.

2025 401(k) Contribution Limits

• Employee limit: $23,500/year
• Catch-up contribution (age 50+): Additional $7,500 (total $31,000)
• Super catch-up (age 60–63, SECURE 2.0): Additional $11,250 instead of $7,500
• Total limit including employer contributions: $70,000

Example Calculation

Salary: $80,000 | Contribution: 10% ($8,000/year) | Employer match: 100% up to 5% ($4,000) | Current balance: $30,000 | Return: 7% | Age 35 → 65

• Annual total invested: $12,000 ($8,000 + $4,000 match)
• Projected balance at 65: ≈ $1,580,000
• Of that, employer match alone contributes: ≈ $527,000

The Free Money You're Missing

Not contributing enough to get the full employer match is the single biggest 401(k) mistake. A 50% match on the first 6% of salary on an $80,000 income = $2,400/year in free money. Over 30 years at 7%, that's $243,000 you'd leave behind.

Common Mistakes to Avoid

• Not contributing enough to get the full match — Always contribute at least enough to maximize the employer match.
• Keeping contributions in the default money market fund — Most 401(k) defaults are conservative. Choose an age-appropriate target-date fund or equity allocation.
• Cashing out when changing jobs — Rolling over to an IRA or new employer plan avoids penalties and keeps the money compounding.
• Borrowing from your 401(k) — You lose compounding on withdrawn funds and pay taxes on repayments. Avoid unless absolutely necessary.

Frequently Asked Questions

Traditional 401(k) vs. Roth 401(k): which is better?

Traditional: pre-tax contributions reduce taxable income now, taxed on withdrawal. Roth: post-tax contributions, tax-free growth and withdrawal. If you expect to be in a higher tax bracket in retirement, Roth wins. Compare both with our Roth IRA Calculator.

What happens to my 401(k) if I change jobs?

You can roll it into your new employer's 401(k) or an IRA with no tax consequence. You can also leave it at the old employer (if balance > $5,000). Never cash it out — the 10% penalty plus income tax is devastating.

At what age can I withdraw from my 401(k) without penalty?

Age 59½. Before that, withdrawals incur a 10% penalty plus income tax (with some exceptions for hardship, disability, or substantially equal periodic payments).

When do required minimum distributions start?

Under SECURE 2.0, RMDs from 401(k)s begin at age 73 (75 for those born after 1960). Calculate your future RMDs with our RMD Calculator.

Conclusion

Your 401(k) — especially with employer matching — is the foundation of most people's retirement plan. Maximize contributions, invest appropriately for your age, never cash out early, and check your projected balance annually. The math rewards consistency over decades.

Related: Retirement Calculator | Roth IRA Calculator | IRA Calculator | RMD Calculator