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Investing & Retirement
401(k) Calculator — Project Your Retirement Balance with Employer Match
Free employer money first: how the match, pre-tax deferrals and rising salary build your 401(k)
A 401(k) is the only retirement account where someone pays you to use it. Beyond your own savings, your employer typically drops a match into the account — free money you get just for contributing — and the money you put in goes in before taxes (in a traditional plan), so a dollar of contribution costs you less than a dollar of take-home pay. That combination of an employer match plus a pre-tax discount is what sets the workplace 401(k) apart from an IRA or a brokerage account, and it's the angle this calculator is built around: it shows what your match dollars and pre-tax deferrals grow into, and exactly how much match you forfeit if you contribute below your plan's cap.
The match is the headline number. A typical formula is "50% up to 6%" — the employer adds 50 cents per dollar you contribute, but only on the first 6% of salary. On an $80,000 salary, contributing at least 6% earns the full match of 0.50 × 6% × 80,000 = $2,400 a year in free money. Contribute only 3% and you collect half that, throwing away $1,200 a year you were entitled to. There is no investment return anywhere that matches an instant 50% on every dollar, so capturing the full match is the first job before anything else.
Pre-tax means the IRS subsidizes your savings. A traditional 401(k) deferral lowers your taxable income today. In the 22% bracket, putting $8,000 into your 401(k) only shrinks your paycheck by about $6,240 — the other $1,760 is tax you would have owed anyway. You pay ordinary income tax later when you withdraw. If you'd rather pay tax now and take tax-free withdrawals in retirement instead, that's a Roth account — model that path with the Roth IRA Calculator, which is the after-tax mirror image of this page.
Worked example. You're 35, retiring at 65 (30 years), earn $80,000, contribute 10%, get a 50%-up-to-6% match, start with $50,000, expect a 7% return, and assume 2% annual raises. Year one you defer $8,000 pre-tax, your employer adds $2,400, and as your salary climbs each raise lifts both numbers. After 30 years the projected balance lands around $1.59 million — and of every dollar you personally deferred, the employer match and the tax break mean a large slice cost you nothing out of pocket.
Mind the 2025 deferral cap. The IRS limits your own deferrals to $23,500 in 2025 ($31,000 if you're 50 or older, with catch-up). The employer match sits on top and doesn't count against that cap. The calculator enforces the limit, so 20% of a $200,000 salary deposits $23,500, not $40,000 — a real constraint for high earners. (For the raw mechanics of how a balance compounds year over year, see the Compound Interest Calculator; this page focuses on the match, the pre-tax break, and the deferral cap instead.)
This tool provides informational estimates only, not investment, tax, or retirement advice; your actual results depend on markets, fees, plan rules, your tax bracket, and IRS limits, which change over time.
📖 See also: 401(k) vs Roth IRA: Which Should You Fund First?
Calculator
Fill in the fields and click "Calculate" for instant results.
📰 Formula
• Years to retirement = retirement age − current age • Each year: salary grows by salary-growth % • Your contribution = min(salary × contribution %, IRS limit) • Employer match = match % × min(contribution %, match cap %) × salary • Year-end balance = (prior balance × (1 + return)) + your contribution + employer match • Repeat for every year; projected balance is the final year-end value • Investment growth = projected balance − your total contributions − total employer match − starting balance
📰 Formula
• Years to retirement = retirement age − current age • Each year: salary grows by salary-growth % • Your contribution = min(salary × contribution %, IRS limit) • Employer match = match % × min(contribution %, match cap %) × salary • Year-end balance = (prior balance × (1 + return)) + your contribution + employer match • Repeat for every year; projected balance is the final year-end value • Investment growth = projected balance − your total contributions − total employer match − starting balance
🧪 Worked examples
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⚠️ Common mistakes
- Contributing below the match cap and leaving free employer money on the table.
- Ignoring the IRS deferral limit ($23,500 in 2025) on high salaries and high contribution rates.
- Forgetting a traditional 401(k) is pre-tax — every withdrawal is taxed, unlike a Roth.
- Confusing the match percentage with the match cap (a 50% match up to 6% is not a 6% match).
💡 Tips
- Always contribute at least enough to capture the full employer match — it's an instant 50%–100% return no market can beat.
- Check your plan's vesting schedule: match dollars may not be fully yours until you've stayed a few years.
- Auto-escalate your deferral by 1% each raise — the pre-tax break softens the hit, so you barely feel it.
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❓ Frequently asked questions
How does this 401(k) projection handle the match and the IRS cap?
Each year your salary grows, you defer a percentage of it (capped at the 2025 limit of $23,500), and your employer adds its match on top — the match never counts against your personal cap. Your own deferral plus the match are both added to the balance, which then earns your expected return. Lower your contribution below the match cap and the projection deposits less free money, which is exactly the gap this page is built to show.
How does an employer 401(k) match work?
A common formula is '50% up to 6%' — the employer adds 50 cents per dollar you contribute, but only on the first 6% of your salary. On an $80,000 salary, contributing at least 6% earns the full $2,400 match. Some employers match 100% up to 3%–5% instead.
What is the 401(k) contribution limit for 2025?
In 2025 you can defer up to $23,500 of your own salary into a 401(k). If you're 50 or older, a catch-up contribution raises your limit to $31,000. The employer match does not count toward your personal deferral limit.
How much should I contribute to my 401(k)?
At a minimum, contribute enough to get the full employer match — anything less leaves free money behind. Many planners suggest aiming for 10%–15% of salary including the match, increasing it over time as your income grows.
How much does it really cost me to miss the full match?
More than the missed dollars, because they never get to compound. On an $80,000 salary with a 50%-up-to-6% match, contributing 3% instead of 6% forfeits $1,200 of free money every year. Skipped for 30 years and grown at 7%, that lost match alone would have become roughly $113,000 of retirement balance — gone, simply for under-contributing.
Do I actually own the employer match right away (vesting)?
Not always. Your own deferrals are 100% yours immediately, but the employer match often follows a vesting schedule — either cliff vesting (fully yours after, say, 3 years, nothing before) or graded vesting (you earn a percentage each year). Leave before you're vested and you forfeit the unvested match, so check your plan's schedule before changing jobs.
Is a traditional 401(k) or a Roth better for me?
A traditional 401(k) gives you the pre-tax break now and taxes withdrawals later; a Roth flips that — you pay tax on contributions now and take qualified withdrawals tax-free in retirement. Traditional wins if you expect a lower tax bracket later; Roth wins if you expect the same or higher. Either way, contribute enough to grab the full employer match first. To project the tax-free Roth path, use the Roth IRA Calculator.
Will I owe tax on this projected 401(k) balance?
Yes, on a traditional 401(k). The number shown is in nominal, pre-tax dollars, and every withdrawal in retirement is taxed as ordinary income — so the spendable amount is lower than the headline. That's the trade for the upfront pre-tax discount. If you'd rather lock in tax-free withdrawals instead, model a Roth account with the Roth IRA Calculator.
What happens if I contribute more than the match cap?
You still get the full match (capped at the match limit), and your extra contributions keep growing tax-deferred — you just don't earn additional matching above the cap. It's still worthwhile, up to the IRS deferral limit, because of the tax advantage and compounding.