Free Retirement Planning Tool — 2026
401(k) Calculator — See How Your Retirement Savings Grow
Use our free 401(k) Calculator to find out exactly how much your retirement savings will be worth by the time you retire. Enter your current balance, contribution rate, employer match, expected annual return, and years until retirement — and instantly see your projected 401(k) balance, total contributions, and investment growth broken down year by year.
A 401(k) is the most powerful retirement savings tool available to most U.S. workers. Contributions are made pre-tax, reducing your taxable income today, while your money grows tax-deferred until withdrawal. For 2026, the IRS employee contribution limit is $23,500, with an additional $7,500 catch-up contribution for workers aged 50 and over. See the official IRS 401(k) contribution limits for full details.
Need to know your salary first? Visit the USA Pay Calculator home page to explore all tools, use our Salary Calculator to convert hourly pay to annual income, or check our Paycheck Calculator to see exactly how increasing your 401(k) contribution rate changes your monthly take-home pay.
401(k) Calculator
Enter your details below to see your projected retirement balance instantly.
Enter your details on the left to get started.
How the 401(k) Calculator Works
Get your full retirement savings projection in five simple steps.
Enter your age & salary
Type your current age, target retirement age, and annual salary before taxes. These set the foundation for the projection.
Set your contribution rate
Drag the slider to your 401(k) contribution rate. The calculator automatically checks it against 2026 IRS limits and flags if you’re over.
Add your employer match
Enter your employer’s match percentage and the salary cap it applies to — for example, 100% match up to 3% of salary is a very common plan structure.
Choose expected return
Set your expected annual investment return. A 6–8% average is commonly used for a diversified stock/bond portfolio over the long term.
See your projection
Instantly view your projected balance at retirement, total contributions, employer match total, investment growth, and a year-by-year breakdown.
401(k) Contribution Limits for 2026
The IRS adjusts 401(k) contribution limits each year for inflation. These are the confirmed limits for the 2026 tax year. Contributing up to the limit — especially if your employer offers a match — is one of the most effective ways to grow your retirement savings.
| Contribution Type | Who It Applies To | 2026 Limit |
|---|---|---|
| Employee Elective Deferral | All employees under age 50 | $23,500 |
| Catch-Up Contribution | Employees age 50–59 and 64+ | $7,500 extra |
| SECURE 2.0 Enhanced Catch-Up | Employees age 60, 61, 62, and 63 only | $11,250 extra |
| Total Employee Contribution (under 50) | All employees under age 50 | $23,500 |
| Total Employee Contribution (age 50–59 / 64+) | Employees age 50–59 and 64+ | $31,000 |
| Total Employee Contribution (age 60–63) | Employees age 60, 61, 62, or 63 | $34,750 |
| Combined Limit (Employee + Employer) | All employees | $70,000 |
| Combined Limit (age 50+ with catch-up) | Employees age 50 and over | $77,500 |
Source: IRS Revenue Procedure 2025-29. Limits apply to traditional 401(k), Roth 401(k), 403(b), and most 457(b) plans. The SECURE 2.0 Act of 2022 introduced the enhanced catch-up for ages 60–63 starting in 2025. Always verify current limits at IRS.gov.
Understanding How a 401(k) Works
What Is a 401(k)?
A 401(k) is an employer-sponsored retirement savings account that lets you invest a portion of each paycheck before taxes are taken out. Your money grows tax-deferred — you don’t pay income tax on it until you withdraw it in retirement, typically after age 59½. Most employers offer a 401(k) as part of their benefits package, and many match a portion of your contributions as an additional incentive to save.
Traditional 401(k) vs. Roth 401(k)
A Traditional 401(k) uses pre-tax contributions — you reduce your taxable income today and pay tax when you withdraw in retirement. A Roth 401(k) uses after-tax contributions — you pay tax now, but all qualified withdrawals in retirement are completely tax-free, including the growth. If you expect to be in a higher tax bracket in retirement, a Roth 401(k) often makes more long-term sense.
How Employer Matching Works
Employer matching is essentially free money added to your retirement account. A common structure is a 100% match on your contributions up to 3% of your salary — meaning if you contribute 3% of a $70,000 salary ($2,100), your employer adds another $2,100. Some plans use a tiered match, such as 100% on the first 3% and 50% on the next 2%. Always contribute at least enough to capture your full employer match.
The Power of Compound Growth
The biggest advantage of a 401(k) isn’t just the tax break — it’s compound growth over decades. At a 7% average annual return, money doubles roughly every 10 years. Starting at age 25 instead of 35 can result in nearly twice the retirement balance on the same contributions, simply because the money has more time to compound. Use our 401(k) Calculator above to see what starting earlier does to your projected balance.
How 401(k) Contributions Affect Your Paycheck
Because traditional 401(k) contributions are pre-tax, they reduce your taxable income for the year. If you earn $65,000 and contribute 6% ($3,900), you’re only taxed on $61,100. This means your take-home pay doesn’t drop by the full contribution amount — the actual reduction is smaller because you save on federal (and often state) income tax. Use our Paycheck Calculator to see your exact take-home pay at different contribution rates.
Early Withdrawal Penalties
Withdrawing money from a traditional 401(k) before age 59½ triggers a 10% early withdrawal penalty plus ordinary income tax on the full amount withdrawn. On a $20,000 withdrawal, that could mean $5,000–$8,000 in taxes and penalties depending on your tax bracket. Certain hardship exceptions exist (disability, medical expenses, separation from service at age 55+), but in general, a 401(k) should be treated as untouchable until retirement age.
📊 How much should I contribute to my 401(k)?
Financial planners often recommend contributing at least enough to capture your full employer match (the minimum “free money” threshold), then working toward 10–15% of your gross salary total (including the match) as a long-term savings goal. The right number depends on your age, current savings, retirement goals, and other financial obligations. Our 401(k) Calculator lets you try different contribution rates to see the long-term impact on your balance — and our Salary Calculator can help you figure out what percentage of your income different dollar amounts represent.
401(k) Calculator — Frequently Asked Questions
A 401(k) calculator uses compound interest math to project how your retirement savings will grow over time. It takes your current balance, annual salary, contribution rate, employer match, expected annual return, and years until retirement — then calculates year-by-year how much your balance grows from new contributions, employer matching, and investment returns compounding on each other. Our calculator also checks your contribution against 2026 IRS limits and shows a full year-by-year breakdown table.
For 2026, the IRS employee contribution limit for a 401(k) is $23,500 for workers under age 50. Workers aged 50–59 and 64 and over can add a $7,500 catch-up contribution for a total of $31,000. Workers aged 60, 61, 62, or 63 benefit from a new SECURE 2.0 enhanced catch-up of $11,250, bringing their total to $34,750. The combined employee-plus-employer limit is $70,000.
At minimum, you should contribute enough to capture your full employer match — anything less is leaving guaranteed free money behind. Beyond that, a common guideline is to save 10–15% of your gross salary total (including employer contributions) toward retirement. If you’re starting later, you may need to contribute more aggressively. Use our 401(k) Calculator to try different contribution rates and see how each one affects your projected retirement balance.
A 6–8% average annual return is commonly used in long-term 401(k) projections for a diversified portfolio of stocks and bonds. The S&P 500 has historically averaged around 10% before inflation, but most planners use a more conservative figure to account for fees, bond allocations, and the possibility of lower future returns. For a conservative estimate use 5–6%; for a moderate estimate use 7%; for an optimistic scenario try 9–10%. Our calculator lets you adjust this slider to see how different return assumptions change your projected balance.
Yes, but by less than you’d expect. Traditional 401(k) contributions are pre-tax, so they reduce your taxable income. If you’re in the 22% federal tax bracket and contribute $200 per paycheck, your take-home pay only drops by about $156 — the other $44 is offset by the tax savings. Use our Paycheck Calculator to see your exact take-home pay change when you adjust your contribution rate.
You have several options when you leave a job: leave the money in your former employer’s plan (if allowed), roll it over to your new employer’s 401(k), roll it over to an IRA, or cash it out. Cashing out is the most costly option — you’ll owe income tax plus a 10% early withdrawal penalty if you’re under 59½. A direct rollover to a new 401(k) or IRA is usually the best move to keep your money growing tax-deferred without triggering taxes or penalties.
Vesting determines when employer-matched contributions actually belong to you. Your own contributions are always 100% yours immediately. Employer match contributions often vest on a schedule — for example, 20% per year over five years, or 0% for two years then 100% (cliff vesting). If you leave before you’re fully vested, you may forfeit some or all of the employer match. Always check your plan’s vesting schedule before making a job change.
In addition to the 401(k) Calculator, we offer a Paycheck Calculator to see your take-home pay after all deductions, a Salary Calculator to convert hourly pay to annual income, an Overtime Calculator for time-and-a-half earnings, and state-specific paycheck calculators for all 50 states. Visit the USA Pay Calculator home page to explore all free tools.