How this calculator works
Enter your age, salary, contribution percentage, and employer match terms, and this calculator computes your annual contribution (yours plus your employer’s match, capped at the 2026 IRS limit for your age), then projects how that grows by retirement using the same compound-growth engine as our Compound Interest calculator.
The formula
employeeContribution = min(salary × contributionPercent, 2026 IRS limit for your age)
employerMatch = min(contributionPercent, matchLimitPercent) × salary × matchRate
totalAnnualContribution = employeeContribution + employerMatch
projectedBalance = compound growth of (currentBalance, totalAnnualContribution/12 per month,
expected return, monthly compounding) over (retirementAge − currentAge) years
Worked example
A 30-year-old earning $80,000/year, contributing 5%, with a 100% match up to 3% of salary:
- Your contribution: $80,000 × 5% = $4,000/year (well under the $24,500 limit)
- Employer match: min(5%, 3%) × $80,000 × 100% = $2,400/year
- Total annual contribution: $6,400/year
At a 7% expected annual return over 35 years to retirement (age 65), that contribution compounds substantially beyond the amount contributed — see the calculator above for the exact projected balance.
Frequently asked questions (FAQ)
What are the 2026 401(k) contribution limits?
The elective deferral limit is $24,500 for 2026. Savers 50 and older can add an $8,000 catch-up contribution ($32,500 total); a SECURE 2.0 provision gives an even higher catch-up of $11,250 specifically for ages 60-63 ($35,750 total).
What match should I take if my employer offers one?
Almost always, contribute at least enough to get the full employer match — it's an immediate, guaranteed return on your contribution that you can't get anywhere else. Leaving match money on the table is leaving free compensation unclaimed.
Roth vs. traditional 401(k) — which is better?
Traditional contributions reduce your taxable income now and are taxed when withdrawn in retirement; Roth contributions are taxed now but grow and withdraw tax-free. Generally, Roth tends to favor people who expect to be in a similar or higher tax bracket in retirement — this calculator doesn't distinguish between the two, it just projects the balance.
What happens if I contribute more than the IRS limit?
Excess contributions can trigger double taxation if not corrected by the tax deadline, so employers generally cap payroll deductions automatically once you hit the limit. This calculator caps your contribution the same way and flags when your entered percentage would have exceeded it.
Does this account for salary raises over time?
No — this is a v1 simplification. It assumes your salary and contribution percentage stay flat every year until retirement, which will understate your likely real-world balance if you expect raises or plan to increase your contribution rate over time.