How this calculator works
Your projected balance compounds monthly: the starting balance grows at your assumed return, your employee contributions (capped at the 2026 IRS deferral limit for your age, including catch-up if you're 50+) and your employer's match are added every month and compound alongside. Employer match dollars are separate from your own limit — they can push total contributions well above it.
Example calculation
A 35-year-old earning $95,000, contributing 10% ($9,500/yr) with a 4% match ($3,800/yr) and $85,000 already saved, compounding at 7% for 30 years: about $2.04 million — $484,000 of it contributions and starting balance, roughly 76% investment growth. Run the numbers above with your own inputs.
Common mistakes to avoid
- Assuming dollar-for-dollar match — many plans match 50% of the first 6% of pay.
- Forgetting the deferral cap: excess contributions must be removed and are taxed.
- Ignoring fees: a 1% expense ratio quietly takes roughly a quarter of a 30-year balance's growth.
Assumptions and limitations
Constant returns (real markets swing), no salary growth, no vesting schedule, no Roth 401(k) tax treatment, and 2026 limits held flat. Limits shown are for the 2026 tax year; verify current figures with the IRS or your plan administrator before acting.
Frequently asked questions
How does employer matching work?
The most common formula is '50% of the first 6%' — you contribute 6% of pay, your employer adds 3%. Some match dollar-for-dollar up to a cap. This calculator uses a simple full-percentage match of your income; check your plan's summary description for the real formula, because the match is the only guaranteed return in investing and worth capturing entirely.
What is the 2026 401(k) contribution limit?
$24,500 for your own employee deferrals, plus an $8,000 catch-up if you're 50 or older — or an enhanced $11,250 catch-up if you're 60–63 (SECURE 2.0), for a possible $35,750 total. Employer match dollars sit on top of your limit under a separate combined cap. Note: from 2026, workers whose prior-year wages exceeded $150,000 must make catch-up contributions as Roth.
Is a 401(k) balance of 5× my income really enough?
It's a coarse milestone, not a verdict. Common savings benchmarks put roughly 7–8× salary at age 60 and 10× at 67 for traditional retirement. The 5× status line in this tool is a conservative early flag — for a real answer, run your actual spending through the Retirement Calculator, which converts spending into a target.