401(k) Calculator

Q: How much should I contribute to my 401(k)?

At minimum, enough to capture the full employer match — that's an instant 50%-100% return. The common overall guideline is 10%-15% of salary toward retirement including the match. The 2025 employee contribution limit is $23,500 ($31,000 with age-50+ catch-up).

Q: How does a typical employer match work?

A common formula is 50% of your contributions up to 6% of salary — worth up to 3% of pay. On an $80,000 salary that's $2,400 of free money per year, which compounds to six figures over a career.

Q: Traditional or Roth 401(k)?

Traditional contributions cut taxes now and are taxed at withdrawal; Roth contributions are taxed now and withdrawn tax-free. Roth generally favors those expecting higher future tax rates (often younger or lower-bracket savers); traditional favors peak earners. Splitting between both hedges the bet.

Project your balance at retirement — with the employer match counted separately, so you can see exactly what that free money compounds into.

Projected balance at 67

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Your contributions

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Employer match (free money)

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Investment growth

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Match's share of final balance

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How the match math works

Match = min(Your %, Match cap %) × Match rate × Salary

With a 50%-up-to-6% formula, contributing 6%+ of salary earns the full 3%-of-salary match. Contributing less than the cap leaves guaranteed money on the table — no investment on earth reliably beats an instant 50% return.

Worked example

Age 30 → 67 · $80,000 salary growing 3%/yr · you contribute 10% · employer matches 50% up to 6% · 6.5% returns · $25,000 start

Projected balance: ≈ $1.5M. The employer match alone contributes about $150,000 of deposits that compound to roughly $330,000 of the final balance.

Getting the most from your 401(k)

Priority order used by most planners: contribute to the full match first (instant return), then max an HSA or Roth IRA if eligible (better investment menus, more flexibility), then raise 401(k) contributions toward the annual limit ($23,500 for 2025; +$7,500 catch-up at 50). Watch fund fees inside the plan — a 1% expense ratio quietly consumes roughly a quarter of a career's growth versus a 0.1% index fund. And when changing jobs, roll the balance over rather than cashing out: a $25,000 cash-out at 30 costs taxes and penalties now, and about $250,000 of retirement money later. See where the balance fits in your overall plan with the retirement calculator.

Frequently asked questions

How much should I contribute to my 401(k)?

At least the full match; 10–15% of salary overall. 2025 limit: $23,500 ($31,000 at 50+).

How does a typical employer match work?

Commonly 50% of contributions up to 6% of salary — worth 3% of pay, ~$2,400/yr on $80,000.

Traditional or Roth 401(k)?

Traditional = tax break now; Roth = tax-free later. Roth favors lower current brackets; many split both.

Related calculators

Note: Assumes contribution limits are not binding and constant return/growth rates; IRS limits change annually. Not financial or tax advice. Contribution limits: 2025 tax year. Last reviewed: July 2026.