401(k) Calculator 2026
Project your 401(k) balance at retirement with employer match, annual raises, and compound growth.
Contributing 6% of an $80,000 salary with a 3% employer match and 7% annual return from age 30 will produce approximately $1.1 million by age 65. The 2026 401(k) employee contribution limit is $23,500 — or $31,000 if you are 50 or older.
Projected Balance at Retirement
$1,443,670.51
Your Total Contributions
$239,973.49
Total Employer Match
$119,986.75
Total Investment Growth
$1,073,710.27
2026 401(k) contribution limit: $23,500 ($31,000 if age 50+). Employer match shown separately.
2026 401(k) contribution limit: $23,500 ($31,000 if age 50+). Employer match shown separately.
About This Calculator
A 401(k) is an employer-sponsored retirement plan that lets you invest pre-tax dollars, deferring income tax until withdrawal in retirement. Your contributions reduce your current taxable income: on an $80,000 salary at a 22% bracket, contributing $8,000 saves you $1,760 in federal taxes this year alone.
The most critical factor in 401(k) wealth-building is the employer match — free money that doubles your contributions up to the match limit. A 3% match on an $80,000 salary adds $2,400 per year that costs you nothing. Over 35 years at 7% return, that match alone grows to roughly $338,000.
Market returns compound over time: $1 invested at 30 becomes $7.61 by 65 at a 7% annual return. Starting a decade earlier at 20 turns that same dollar into $14.97 — nearly double. This is why time in the market, not timing the market, determines most of your outcome.
How to Use
- 1Enter your current age and planned retirement age to set the investment horizon.
- 2Enter your annual salary and your 401(k) contribution percentage (start with at least enough to get the full employer match).
- 3Enter the employer match percentage — this is free money added to your account.
- 4Set your expected annual return rate. Diversified stock/bond portfolios have historically averaged 6–8% over long periods.
- 5Review your projected balance, total contributions, employer match total, and investment growth.
Formula & Methodology
Each year, your balance grows by: (Previous Balance + Your Contribution + Employer Match) × (1 + Annual Return Rate). Contributions are capped at the IRS limit ($23,500 in 2026). The employer match is calculated as: Salary × Match Percentage, up to the employer's stated cap.
Frequently Asked Questions
What is the 401(k) contribution limit for 2026?
The 2026 employee contribution limit is $23,500. If you are age 50 or older, you can make an additional catch-up contribution of $7,500, for a total of $31,000. The combined limit (employee + employer) is $70,000 in 2026.
What happens to my 401(k) if I leave my job?
You have four options: leave it with the former employer (if allowed), roll it into your new employer's 401(k), roll it into an IRA (no immediate taxes), or cash it out (income taxes + 10% early withdrawal penalty if under 59½). Rolling into an IRA is usually the best choice for flexibility.
How much should I contribute to my 401(k)?
At minimum, contribute enough to capture the full employer match — that is an immediate 50–100% return on that money. Most financial planners recommend saving 15% of gross income for retirement total (including employer match). The 2026 limit is $23,500.
Can I withdraw from my 401(k) early?
Yes, but early withdrawals before age 59½ trigger income taxes plus a 10% penalty. Exceptions include substantially equal periodic payments (Rule 72(t)), disability, separation from service at 55+, and certain medical expenses. Starting at 59½, you pay only ordinary income tax on withdrawals.
Is a Roth 401(k) better than a traditional 401(k)?
It depends on your current vs future tax rate. If you expect to be in a higher bracket in retirement, Roth 401(k) (after-tax now, tax-free later) wins. If you're in a high bracket now and expect lower rates in retirement, traditional 401(k) (deductible now, taxed later) is better. Many advisors recommend diversifying across both.
What is the average 401(k) balance by age?
According to Vanguard's 2025 data: age 25-34: ~$37,000 average ($14,000 median); age 35-44: ~$91,000 average ($35,000 median); age 45-54: ~$168,000 average ($60,000 median); age 55-64: ~$244,000 average ($87,000 median). Averages are skewed by high earners — medians better reflect typical workers.
Sources & References
Last updated: 2026-04-12