401(k) Calculator
Project your 401(k) balance at retirement with employer matching, annual raises, and compound growth — and see exactly how much of that future balance is your employer's money.
Written by Daniel Mercer, CFP® · Reviewed by Sarah Lindqvist, CFA
Last reviewed:
Projected 401(k) at 65
$1,724,599
- This year: you contribute
- $5,600
- This year: employer adds
- $2,800
- Lifetime employee contributions
- $279,969
- Lifetime employer match
- $139,985
Balance by age
What this calculator does
A 401(k) is three growth engines stacked: your contributions, your employer’s match, and compounding on both. This calculator runs all three year by year — with your salary rising over time — and reports the projected balance along with the line most statements never show: the lifetime total your employer contributed. For most careers, that match line is a five- or six-figure sum earned by nothing more than checking a box during onboarding.
How the math works
Each simulated year:
- You contribute your percentage of that year’s salary.
- The employer matches: salary × min(your %, match limit) × match rate.
- The balance compounds: balance × (1 + return) + both contributions.
- Salary grows by your raise assumption.
The projection is nominal (future dollars). For an inflation-adjusted view, the retirement calculator runs the same engine and deflates the result.
A worked example
Age 30, retiring at 65, current balance $25,000, salary $70,000, contributing 8% with a 100% match up to 4%, 7% returns, 2% raises.
Year one is easy to verify by hand: you contribute $5,600 (8% of 70,000); your employer adds $2,800 (100% of the first 4%). That $2,800 is an instant, risk-free 50% boost on your total contribution — before any market return.
Run the full 35 years and the employer’s side alone — $2,800 growing with raises and compounding at 7% — accumulates to roughly $486,000 of the final balance. Decline the match by contributing less than 4%, and that entire line item simply never exists.
Practical tips
- Never contribute below the match limit. It’s the highest-yield decision in personal finance: a 100% match is a guaranteed doubling of your money on day one. Whatever else your budget must sacrifice, capture the full match.
- Escalate 1% per year. Most plans offer automatic escalation. Moving from 8% to 12% one point at a time — ideally timed with raises — is barely felt in take-home pay and dramatically felt at 65. Change the contribution input here and watch.
- Check your vesting schedule. Your own contributions are always yours; employer match may vest over 3–6 years. If you’re months from a vesting cliff, the timing of a job change can be worth thousands.
- Mind fees inside the plan. A fund charging 0.8% versus 0.08% quietly consumes a meaningful slice of a 35-year balance. Most plans include at least one low-cost index or target-date option — the expense ratio is on the fund’s fact sheet.
The match is the headline
Everything else about 401(k)s — fund menus, Roth-versus-traditional, rollovers — matters less than two behaviors: contribute at least to the match limit, and don’t interrupt the compounding. This calculator exists mostly to make those two behaviors emotionally concrete: the match line shows what your employer pays you to save, and the chart shows what time does with it. For the tax-free sibling of this account, see the Roth IRA calculator; for whether the total is enough, the retirement calculator answers in today’s dollars.
Frequently asked questions
- How does an employer match actually work?
- Two numbers define it: the match rate and the limit. "100% match up to 4% of salary" means every dollar you contribute, up to 4% of your pay, is doubled. Contribute less than the limit and you receive proportionally less; contribute more and the excess is unmatched (but still grows tax-advantaged). Enter both numbers from your plan documents — they vary widely.
- How much can I contribute to a 401(k)?
- The IRS sets annual employee contribution limits, adjusted most years for inflation, with an additional catch-up allowance from age 50 (check the current figures on the IRS page linked below). Employer match money does not count against your employee limit — it has a separate, higher combined ceiling.
- Traditional or Roth 401(k)?
- Traditional contributions skip taxes now and pay them at withdrawal; Roth contributions pay taxes now and withdraw tax-free. The rough rule: expect a higher tax rate in retirement than today → Roth; lower → traditional. Either way the employer match is always contributed pre-tax. Model the Roth side with our Roth IRA calculator — the compounding math is identical.
- What return should I assume?
- A typical 401(k) menu's target-date or index funds have historically delivered portfolio returns in the 6–8% range over long horizons, before inflation. This calculator projects in nominal dollars — to see what the balance buys in today's money, cross-check with the inflation calculator or use the full retirement calculator, which deflates automatically.
- What happens to my 401(k) when I change jobs?
- Four options: leave it (if the balance is large enough), roll it into the new employer's plan, roll it into an IRA, or cash out. Cashing out before 59½ typically triggers income tax plus a 10% penalty and permanently removes the compounding you've built — almost always the worst choice. Also check your plan's vesting schedule: employer match money may only become fully yours after several years.
Sources
Written by
Daniel is a Certified Financial Planner™ with 12 years of experience helping households manage debt, savings, and retirement planning. He writes ToolGrym’s calculator guides and explains the math behind every tool.
Reviewed by
Sarah is a CFA charterholder who reviews every ToolGrym calculator and article for mathematical accuracy. She has 10 years of experience in fixed-income analytics and consumer lending models.