How does employer matching work?

Many employers match a percentage of your contributions up to a limit — for example, 50% of contributions up to 6% of salary. That match is effectively free money and is included in this projection.

What is the 401(k) contribution limit?

For 2025 the employee elective deferral limit is $23,500, plus a $7,500 catch-up if you are 50 or older. Limits are adjusted periodically by the IRS.

Should I always contribute enough to get the full match?

Generally yes — not capturing the full employer match leaves guaranteed money on the table. This tool shows the cumulative value of that match over time.

Does this include taxes?

Traditional 401(k) contributions are pre-tax and withdrawals are taxed in retirement. This projection shows the pre-tax balance; use the Roth vs. Traditional calculator to compare after-tax outcomes.

No. Everything is calculated in your browser; nothing is stored.

401(k) Calculator

See how your contributions, your employer's match, and decades of compounding grow your 401(k) balance.

Your 401(k)

Current age Retirement age

Annual salary

Current 401(k) balance

Your contribution

Employer match

Match capped at

% pay

Annual return

Annual raise

Your contributions

Employer match

Investment growth

Over your career, the employer match alone adds an estimated — that's free money for retiring.

How to Use

1
Enter salary & age. Add your annual salary, current age, and planned retirement age.
2
Set contributions. Enter your contribution percentage and your current 401(k) balance.
3
Add employer match. Enter the employer match rate and the salary percentage it is capped at.
4
Review projection. See your projected balance and how much of it is free employer money.

Calculation Method

Each year we add your contribution and the employer match to the balance, grow it by the expected return, and increase your salary by the annual raise:

balance_y+1 = (balance_y + salary·e% + salary·min(e%, cap)·m%) × (1 + r)

where e% is your contribution rate, cap the salary percentage the match applies to, m% the match rate, and r the annual return. Traditional 401(k) balances are pre-tax; withdrawals are taxed as ordinary income in retirement.

Examples

Example. A 35-year-old earning $75,000, contributing 6% with a 50%-up-to-6% employer match, 7% return, retiring at 65: the projected balance is well over $1M, of which roughly a quarter is employer match and compounding on that match.

Frequently Asked Questions

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Disclaimer: Calculations are projections based on the assumptions you provide and are for informational purposes only. They are not financial, tax, or investment advice. Investment returns are not guaranteed. Consult a Certified Financial Planner (CFP) before making retirement decisions.

Data source: 2025/2026 IRS 401(k) contribution limits. Historical market averages (illustrative).