How this 401(k) calculator works
Each year, the calculator takes your salary, applies your contribution percentage and your employer's match, spreads those contributions evenly across the year, and grows the balance at your expected return. Your salary rises by the annual raise you enter, so your contributions grow with it.
The result is shown two ways: the actual dollar balance at retirement, and that balance in today's dollars after adjusting for inflation. The second number is the better guide to what your savings will actually buy.
2026 401(k) contribution limits
| Limit | 2026 |
|---|---|
| Employee contribution | $24,500 |
| Catch-up, age 50 and over | $8,000 |
| Catch-up, ages 60 to 63 (replaces the age-50 catch-up) | $11,250 |
| Total employee + employer contributions | $72,000 |
The calculator caps your contributions at these limits based on your age each year, and holds the limits at today's level. In practice the IRS raises them with inflation most years, so if you contribute the maximum, your real balance could be somewhat higher. See all current figures on our contribution limits page.
How employer matching works
A typical match looks like "50% of your contributions, up to 6% of salary." On a $75,000 salary, contributing 6% ($4,500) earns a $2,250 match. Contributing only 3% earns half that. The match is an instant return on your money, so contributing at least enough to get all of it is one of the most reliable financial moves available. If you're below that level, the calculator shows how much you're missing each year.
Some employers match dollar-for-dollar, and some use a tiered formula (for example, 100% of the first 3% plus 50% of the next 2%). For a tiered match, enter the blended rate: that example works out to 80% on contributions up to 5% of salary.
Traditional vs. Roth 401(k)
Most plans offer both. Traditional contributions lower your taxable income now, and withdrawals in retirement are taxed as income. Roth contributions are made after tax, and qualified withdrawals are tax-free. The balance this calculator shows is the same either way; what differs is how much of it you keep after tax. If you expect to be in a higher bracket in retirement than today, Roth tends to win; if lower, traditional does.
Choosing your assumptions
- Annual return: over long periods, U.S. stocks have returned roughly 10% a year before inflation (about 7% after), and a mix that includes bonds returns less. Because this calculator adjusts for inflation separately, enter a before-inflation return, and try 5 to 6% as a cautious case.
- Annual raise: 2 to 3% is typical over a career; early-career raises are often larger.
- Inflation: the Federal Reserve targets 2% a year; 2.5 to 3% builds in a margin.
The 4% rule
The summary shows how much yearly income your balance could support at a 4% initial withdrawal rate. The 4% rule comes from research on historical U.S. returns suggesting that withdrawing 4% of your starting balance, then adjusting that amount for inflation each year, lasted at least 30 years in almost all past periods. It's a planning rule of thumb, not a guarantee.
What this calculator leaves out
Fees, taxes on withdrawals, early-withdrawal penalties, loans, vesting schedules for employer contributions, and years with no contributions are not included. Returns are assumed to be steady, while real markets move around. Starting in 2026, if you earned more than a set amount in the prior year, catch-up contributions must go into a Roth account; that changes their tax treatment but not the amount you can contribute.