401K Calculator

401k calculator at a glance#

A 401k calculator projects what your retirement balance could grow to by combining three inputs: your own contributions, any employer match, and investment growth over time. It uses the future value of a series, where each contribution earns a compounding return until you retire, so the final balance is far larger than the total you put in.

For 2025 the IRS limit on your own 401k contributions is $23,500 if you are under 50, with an extra $7,500 catch-up contribution for those 50 and older, for a $31,000 personal cap. Employer matching is on top of that limit and does not count against it.

How much will my 401k be worth? Take contributing $500 a month at a 7% average annual return, compounded monthly. After 30 years you would put in $180,000 of your own money, but growth adds about $430,000, for a projected balance near $610,000. The same $500 a month reaches about $405,000 after 25 years and about $260,000 after 20 years, which shows how much starting early matters.

An employer match adds to this. If you earn $60,000 and contribute 6% ($3,600 a year) and your employer matches 50% of that up to 6%, they add $1,800, so $5,400 lands in your account each year before any growth.

Enter your salary, contribution rate, employer match, current balance, and expected return in the calculator above for your own projected balance. The result depends on the return you assume, so a different rate, market swings, inflation, and fees will shift the final number.

How the calculator works#

The calculator projects a future balance from five inputs: your current balance, your annual contribution, any employer match, an expected annual return, and the years until you retire. Each year's contributions are added to the balance, the whole balance earns the return you assume, and that compounds forward to your retirement age. Change the return or the years and the projection moves a lot, because growth, not the contributions themselves, drives most of the final number over a long horizon.

Making the most of the employer match#

An employer match is money your company adds when you contribute. A common formula is 50% of what you put in, up to 6% of your salary. On a $60,000 salary, contributing 6% ($3,600) earns a $1,800 match, so $5,400 goes in before any growth. Contributing less than 6% leaves part of that match unclaimed. Contributing more is fine, but the match itself stops at the 6% cap, so the rule of thumb is to contribute at least enough to get the full match.

Contribution limits and catch-up#

For 2025 you can contribute up to $23,500 of your own money to a 401k. At age 50 and older you can add a $7,500 catch-up contribution, for a $31,000 personal limit. Employer matching sits on top of these limits and does not count against them. If you started saving late, the catch-up contribution and raising your rate by even one point each year are the two levers that move the projection most.

The cost of early withdrawals#

Taking money out before age 59 and a half usually triggers a 10% early withdrawal penalty plus income tax on the amount you withdraw. Beyond the immediate cost, you lose the future growth that money would have earned, which on a long horizon is often larger than the balance you pulled out. Run the withdrawal through the calculator first to see the long-term gap it leaves.

Frequently asked questions#

How does pre-tax contribution lower my taxes?#

A traditional 401k contribution comes out of your salary before income tax, so it reduces your taxable income for the year. You pay no tax on the contributions or their growth until you withdraw the money in retirement, when it is taxed as income.

What are the 401k contribution limits for 2025?#

For 2025 the limit on your own contributions is $23,500 if you are under 50. Those 50 and older can add a $7,500 catch-up, for $31,000. Employer matching does not count toward these limits.

How do employee and employer contributions differ?#

Employee contributions come out of your own salary, usually as a percentage you choose. Employer matching is extra money your company adds based on what you contribute, up to a set cap. The match is additional, not a deduction from your pay.

How do catch-up contributions help if I started late?#

From age 50 you can contribute $7,500 above the standard limit, raising your personal cap to $31,000 for 2025. Combined with a higher contribution rate, this closes some of the gap if you began saving later in your career.

What happens if I withdraw before age 59 and a half?#

You generally pay a 10% early withdrawal penalty plus income tax on the amount withdrawn, and you give up the future growth that sum would have earned. It is best treated as a last resort.

How do I estimate the future value of my 401k?#

Enter your current age, retirement age, salary, current balance, contribution rate, employer match, and an expected return in the calculator above. It compounds your contributions and match forward to project the balance at retirement.