401(k) Calculator
See what your 401(k) could grow to by retirement — and how much of it comes from your employer’s match, the closest thing to free money in personal finance. Change your contribution to watch the difference compound.
Your details
New to this? Leave the defaults — they’re realistic — and change your salary, contribution and match to match your plan.
What makes up your balance
Your contributions, the free employer match, and what compounding added on top.
Year by year
| Age | You add | Employer adds | Balance |
|---|
Why the employer match matters so much
A 401(k) is a workplace retirement account you fund from your paycheck before taxes, so your contributions lower your taxable income today and grow tax-deferred until you withdraw them in retirement. That tax break is valuable — but for most people the single biggest lever is the employer match.
A match is your employer adding money to your account based on what you contribute. A typical formula is “50% up to 6%”: contribute 6% of your salary and the company kicks in another 3%. That’s an instant, guaranteed 50% return on those dollars before they’ve grown a cent — which is why financial planners are nearly unanimous that you should contribute at least enough to capture the full match. Anything less is leaving guaranteed money on the table.
Then compounding does the heavy lifting
Over a career, the match isn’t just the few thousand dollars a year your employer adds — it’s decades of those dollars compounding alongside your own. In the default example, an employer adding around $105,000 over 35 years turns into roughly $365,000 of the final balance once growth is included.
How we calculate it
Each year we add your contribution and your employer’s match to the balance, then grow the whole thing at your expected return. Your contribution is capped at the IRS employee limit, and the match is applied only up to the percent of salary your employer covers:
New balance = old balance × (1 + return) + your contribution + employer match
Worked example: On a $70,000 salary, contributing 10% is $7,000. With a 50%-up-to-6% match, the employer matches the first 6% ($4,200) at 50% = $2,100 — so $9,100 goes in that year. Repeat for 35 years with raises and 7% growth and the balance reaches about $1.8 million.
What changes your number the most
- Contributing enough to get the full match. The first few percent of salary are the highest-return dollars you’ll ever invest — never leave the match unclaimed.
- Time. Starting in your 20s versus your 30s can double your ending balance, because the early dollars compound the longest.
- Contribution rate. Bumping your own contribution a percent or two a year barely dents your paycheck but adds up enormously by retirement.
- Return and fees. A lower-cost fund that returns even 1% more per year can mean hundreds of thousands of dollars more over a career.
Glossary
- Employer match
- Money your employer contributes to your 401(k) based on what you put in, up to a set percent of your salary.
- Vesting
- The schedule on which employer-match money becomes fully yours. Some plans require a few years of service before the match is 100% vested.
- Contribution limit
- The maximum you can contribute from your own salary each year — $23,500 in 2025, plus a $7,500 catch-up at age 50+.
- Tax-deferred
- You pay no tax on traditional 401(k) contributions or growth until you withdraw the money in retirement.
Frequently asked questions
How much will my 401(k) be worth at retirement?
It depends on your contribution rate, employer match, years invested and return. As an example, a 30-year-old earning $70,000 who contributes 10% with a 50%-up-to-6% match and a 7% return could reach roughly $1.8 million by age 65 — with about $365,000 of that coming from the employer match alone.
How does an employer 401(k) match work?
Your employer adds money based on what you contribute, up to a limit. A common formula is “50% up to 6%”: the company puts in 50 cents per dollar you contribute, on the first 6% of your salary. Contributing at least enough to get the full match is the closest thing to free money in personal finance.
How much should I contribute to my 401(k)?
At minimum, enough to capture your full employer match — not doing so leaves guaranteed money on the table. Many advisors suggest aiming for 10% to 15% of your salary including the match. The 2025 employee contribution limit is $23,500, or $31,000 if you’re 50 or older.
What is the 401(k) contribution limit for 2025?
For 2025 you can contribute up to $23,500 of your own salary to a 401(k), plus a $7,500 catch-up contribution if you’re 50 or older (a $31,000 total). Employer matching contributions are on top of that, under a separate combined limit.
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