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401(k) Calculator

Updated · By the CalculatorDash editorial team · How we check our maths

Quick answer

On an $80,000 salary, contributing 10% with a 50% match on the first 6% adds $10,400 a year. Starting from $20,000 and earning 7% for 30 years, the balance grows to about $1.22 million, of which $72,000 came straight from the employer match.

401(k) projection

$
% of salary
% matched
% of salary
$
years
%

Balance at retirement

$1,219,638

Added each year
$10,400
Employer money over the period
$72,000
Investment growth
$887,638

Ignores salary growth, fees, vesting schedules and the IRS annual contribution limit. Returns are not guaranteed.

How this calculator works

A 401(k) grows from three sources: your contributions, your employer's match and investment returns. Matches are usually expressed as a percentage of your contribution up to a limit, for example 50% of what you put in, up to 6% of salary. Contributing less than the limit leaves free money unclaimed.

This calculator assumes contributions are spread evenly through the year and compound monthly. It doesn't model pay rises, fund fees or vesting, so treat it as a baseline. The IRS also caps how much employees can contribute each year; check the current limit if you contribute a large share of a high salary.

The formula

Your contribution
salary × contribution %
Employer match
salary × min(contribution %, match limit %) × match %
Balance
balance × (1 + r)^n + (yearly total ÷ 12) × ((1 + r)^n − 1) ÷ r

Worked example

10% of $80,000 is $8,000. The employer matches 50% of the first 6%, adding $2,400, so $10,400 goes in each year. With a $20,000 starting balance and 7% returns for 30 years, the account reaches about $1,219,600. You and your employer contribute $332,000 including the starting balance, and $72,000 of that is match.

Tips

  1. 01Always contribute at least enough to get the full match.
  2. 02Check whether your plan offers a Roth 401(k); paying tax now can make sense if you expect a higher bracket later.
  3. 03Low-cost index funds keep more of the growth in your account.

Frequently asked questions

How does a 401(k) match work?

Your employer adds money based on what you contribute, for example 50 cents per dollar on contributions up to 6% of your salary.

How much should I put in my 401(k)?

At minimum, enough to get the full match. Many planners suggest saving 10–15% of income for retirement in total.

Is the employer match vested immediately?

Not always. Some plans vest the match over several years; leaving early can mean losing part of it.

Is there a limit on 401(k) contributions?

Yes. The IRS sets an annual employee contribution limit, plus a higher catch-up limit for people 50 and over. Check the current figures each year.