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401k Calculator: Retirement Balance Projection

Use this 401k calculator to project your retirement balance from salary, contribution percent, employer match, and assumed return. Calculate 401k growth and see the impact of every extra percent you save.

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%
% of salary
$
years
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Projected balance at retirement$0
Your total contributions$0
Employer contributions$0
Investment growth$0
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How this calculator works

The projection uses the standard future value of an annuity formula applied to annual contributions, plus compound growth on the existing balance:

  • Existing balance FV = Balance × (1 + r)ⁿ
  • Annual contributions FV = (Your contribution + Employer match) × [(1 + r)ⁿ − 1] ÷ r
  • Total projected = sum of both

Contributions are assumed to be deposited at the start of each year. The rate (r) is the nominal annual return; the model does not apply monthly compounding on the contributions for simplicity, which produces a slight overestimate. The historical inflation-adjusted return on a diversified US equity index fund has averaged approximately 7% per year over 30-year rolling periods.

2026 IRS 401k contribution limits: $24,500 for employees under 50; $32,500 for those 50 and older (catch-up contribution).

Source: Future value formula per standard financial mathematics. IRS Publication 560 — Retirement Plans for Small Business and IRS Notice 2025-67 for 2026 contribution limits.

FAQ

How much should I contribute to my 401k?
At minimum, contribute enough to get your full employer match — that is free money. Beyond the match, aim for 15% of gross salary total (your contribution + employer match). If starting late, max out at $24,500/year (or $32,500 if 50+).
What is the difference between a traditional and Roth 401k?
Traditional: pre-tax contributions, taxed at withdrawal. Roth: after-tax contributions, withdrawals tax-free. Early in career or expecting higher future taxes → Roth. Expecting lower taxes in retirement → Traditional.
What return rate should I use?
Use 7% for a balanced baseline (inflation-adjusted S&P 500 historical average). Use 5–6% for conservative portfolios. Use 8–10% for nominal (not inflation-adjusted) projections. Never plan long-term above 10%.
How is a 401k balance calculated?
Two parts compound together: your contributions + employer match grow at your assumed annual return. The formula is FV = P × (1+r)n + PMT × ((1+r)n − 1) / r, where P is starting balance, PMT is total annual contribution, r is the annual return, n is years to retirement.
What is the 2026 401k contribution limit?
For 2026, the standard 401k contribution limit is $24,500. If you are 50 or older, the catch-up brings the total to $32,500. The combined employee + employer limit is $71,000 ($78,500 with catch-up). IRS-set caps adjust annually for inflation.
Is it better to do Roth 401k or traditional 401k?
Pure tax math: Roth wins if your retirement tax rate will be HIGHER than today's; traditional wins if LOWER. Most people early in their career should do Roth. High earners near peak income usually benefit more from traditional. When in doubt, split — diversifying tax exposure is its own hedge.
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