401(k) Retirement Savings Calculator

How to use this tool

1. Enter your details. Input your current age, target retirement age, current 401(k) balance, and annual salary.
2. Set contribution rates. Choose the applicable IRS limit year, then enter your salary deferral percentage and employer match terms. The cap is the employee deferral percentage eligible for matching.
3. Set growth assumptions. Enter the expected annual investment return, plan fees, inflation, and annual salary growth rate.
4. Review the projection. See your projected final balance broken down by employee contributions, employer match, and investment growth. Scroll the year-by-year schedule to see compounding in action.

How 401(k) plans work

A 401(k) is an employer-sponsored retirement plan that lets you contribute pre-tax dollars from each paycheck directly into an investment account. Your contributions reduce your taxable income today, and the money grows tax-deferred until you withdraw it in retirement.

Employer matching: free money

Many employers match a portion of employee contributions. A common formula is "100% match on the first 6% of salary." If you earn $80,000 and contribute 6% ($4,800), your employer adds another $4,800, which is a 100% instant return. Always contribute at least enough to capture the full employer match before allocating savings elsewhere.

IRS contribution limits

Select the IRS limit year that applies to your plan. For 2026, the employee elective-deferral limit is $24,500; the general catch-up is $8,000 for ages 50+ and the special catch-up is $11,250 for ages 60 through 63. The projection holds the selected year's dollar limit constant in every future year, rather than presenting an unknown future indexed amount as an IRS limit.

The power of compounding over decades

At a 7% annual return, money doubles roughly every 10 years (the Rule of 72). Starting contributions at 25 instead of 35 roughly doubles the final balance at 65: an extra decade of compounding can be worth more than all the contributions you make in the subsequent 30 years.

Plan fees and purchasing power

Investment and plan fees reduce the return that remains in your account to compound. This calculator subtracts the annual fee percentage from the expected return: for example, a 7% gross return with a 0.35% fee is modeled as a 6.65% net return. The estimated fee impact compares that projection with the same assumptions and no fee; it includes growth the fee dollars could otherwise have earned, so it is not an itemized statement of fees charged by a plan.

Inflation also changes what a future balance can buy. The calculator discounts the projected nominal balance by the inflation rate for each year until retirement to estimate its value in today's dollars. For example, the same nominal balance has less purchasing power after 30 years at 3% annual inflation than it does today. Both the fee and inflation figures are assumptions, and actual returns, plan costs, and future prices will vary.

Capture the employer match

If your current contribution percentage is below the percentage eligible for an employer match, the calculator estimates the additional match available for the first projected year. The one-click adjustment sets your employee contribution to the percentage needed to reach that modeled match, subject to the selected IRS employee contribution limit. Plans can use different formulas, pay-period rules, and vesting schedules, so confirm the estimate against your plan documents before changing payroll elections.

Roth 401(k) vs. traditional 401(k)

Some employers offer a Roth 401(k) option. Traditional contributions are pre-tax (reducing taxable income now; taxed on withdrawal). Roth contributions are after-tax (no deduction now; tax-free in retirement). The same contribution limits apply to both. If you expect to be in a higher tax bracket in retirement, the Roth option may be advantageous.

IRS contribution limit history

Limits have risen by roughly $500–$1,000 most years to keep pace with inflation. Checking for annual limit increases and adjusting contributions accordingly is a simple way to boost retirement savings over time.

Vesting schedules

Your own contributions are always 100% vested immediately. Employer match contributions, however, may be subject to a vesting schedule:

• Cliff vesting: You receive 0% of employer contributions until you reach a certain tenure (often 2–3 years), then 100% immediately. Leaving before the cliff means forfeiting all employer match.
• Graded vesting: Employer contributions vest gradually - for example, 20% per year over 5 years. Leaving after 3 years means you keep 60% of employer contributions.

Always check your plan's vesting schedule before changing jobs, especially if a cliff date is approaching.

Required Minimum Distributions (RMDs)

The IRS requires you to begin withdrawing from traditional 401(k) accounts starting at age 73 (as updated by the SECURE 2.0 Act of 2022). The annual RMD amount is calculated by dividing the prior year-end account balance by a life expectancy factor from IRS tables. Failing to take an RMD results in a 25% excise tax on the amount not withdrawn (reduced to 10% if corrected promptly). Roth 401(k) accounts are also subject to RMDs unless rolled over to a Roth IRA.