401(k) Calculator
This 401(k) calculator projects how much your retirement account could be worth, and it breaks out how much of that comes from your own contributions, your employer match, and investment growth. Adjust the match formula to model offers like 50% up to 6% of pay.
Quick answer
Your balance grows each year from contributions plus investment returns.
What this tells you
- •Your balance grows each year from contributions plus investment returns.
- •The employer match adds free money on top of what you put in, up to a salary-based cap.
- •Time and compounding do most of the work, so starting earlier matters more than any single year.
How to Use
- 1Enter your current age and the age you plan to retire.
- 2Enter your current 401(k) balance and annual salary.
- 3Set the percent of salary you contribute.
- 4Enter the employer match rate and the salary cap it applies to.
- 5Adjust the expected return and optional raise rate, then calculate.
How It Works
Formula
Employee Contribution = Salary x Contribution %
Matched % = min(Contribution %, Match Limit %)
Employer Match = Salary x Matched % x Match Rate
Each year: Balance = Balance x (1 + Return) + ContributionsThe calculator steps through each year to retirement, growing the balance by the expected return and adding your contribution plus the employer match. The match applies only to the first slice of salary set by the match limit.
Calculation note: values are processed in the order shown above, using the current input units.
Worked Examples
Age 30 to 65, 50% match up to 6%
Match only, contributing 6%
Common Employer Match Formulas
What a few standard 401(k) match offers add per year on a $60,000 salary.
| Match Formula | You Contribute | Annual Match | Match Type |
|---|---|---|---|
| 50% up to 6% | 6% ($3,600) | $1,800 | Partial match |
| 100% up to 4% | 4% ($2,400) | $2,400 | Full match |
| 100% up to 6% | 6% ($3,600) | $3,600 | Full match |
| 50% up to 6% | 3% ($1,800) | $900 | Below the cap |
Always contribute at least enough to get the full match. It is an immediate return on your money.
How Does a 401(k) Employer Match Work?
An employer match means your company adds money to your 401(k) based on what you contribute. A common formula is 50% up to 6% of pay, which means the employer adds 50 cents for every dollar you contribute, but only on the first 6% of your salary. Contribute that 6% and you collect the full match. Contribute less and you leave free money on the table.
The match is usually the highest-return part of a 401(k), since a 50% match is an instant 50% gain before any investment growth. Watch for a vesting schedule, though, because some matched dollars only become fully yours after a few years of service.
Common mistakes
- Contributing less than the match cap and missing free money
- Assuming a fixed return every year, which real markets do not deliver
- Forgetting that matched dollars may be subject to a vesting schedule
- Ignoring fees, which reduce the real return over decades