A 401(k) is one of the most effective retirement savings tools for employees in the United States; however, most people have no idea what the actual value of their account will be at retirement. Our 401(k) calculator takes into account your current balance, contribution rate, employer contribution, and expected return to accurately project the growth of your savings year by year. This allows you to know—well before you retire—whether you are on the right track.
How to Use the 401k Calculator
Enter your current age, your planned retirement age, your current 401(k) balance, and your annual salary. Next, specify your contribution rate and your employer’s contribution. The calculator handles the rest, calculating the growth of your savings over the years while accounting for compound interest.
Factors influencing the growth of your 401(k) plan
Three factors determine the extent of your account’s growth: the amount of your own contributions, the employer contribution, and the performance of your investments. Of these factors, investment performance has the greatest long-term impact due to the effect of compound interest: a one-percentage-point difference in average annual return can result in a difference of tens of thousands of dollars over a 30-year career. Most retirement savings experts estimate an average annual return of between 6% and 8% for a diversified portfolio of stocks and bonds, although actual returns fluctuate from year to year.
Employer match: don’t leave this money on the table
If your employer offers a matching contribution to a company retirement savings plan (such as a 401(k)), it effectively amounts to a 100% return on the portion of your contribution covered by the company; it is money you forgo if you do not contribute enough to take advantage of it. A common arrangement involves the employer matching 50% of your contribution, up to a limit of 6% of your salary: for instance, if you earn $60,000 and contribute 6% (i.e., $3,600), your employer adds an extra $1,800 at no cost to you. Always make sure to contribute enough to secure the full employer match before investing elsewhere.
401(k) Contribution Limits for 2026
The IRS sets an annual limit on 401(k) plan contributions. For 2026, the standard employee contribution limit is set at $24,500; additionally, a “catch-up contribution” is permitted for employees aged 50 or older. These limits apply solely to your own contributions; employer contributions do not count toward your personal limit, although a separate combined limit applies to the total contributions from both sources.
Traditional 401(k) or Roth 401(k): Which Option to Choose?
Many employers now offer both a traditional 401(k) option and a Roth 401(k) variant. With a traditional 401(k), your current taxable income decreases, but withdrawals made during retirement are taxed as ordinary income. The Roth 401(k) relies on contributions made from after-tax income; in exchange, qualified withdrawals during retirement—including all investment growth—are entirely tax-free. Generally speaking, employees who expect to be in a lower tax bracket during retirement compared to their current situation are better off choosing a traditional 401(k). Conversely, those who anticipate a similar or higher tax bracket in retirement—often employees early in their careers—usually benefit more from choosing a Roth 401(k).
How much should you contribute to your 401(k) plan?
A common rule of thumb suggests allocating 15% of your income to retirement, including any employer contributions. If this goal seems out of reach for now, start by contributing enough to get the maximum employer match, and then increase your savings rate by 1% each year. Most people barely notice the difference in their take-home pay, but that amount adds up to a significant sum by the time they retire.
Common mistakes to avoid with a 401(k) retirement savings plan
The costliest mistake is failing to contribute enough to fully take advantage of the employer match. Additionally, withdrawing 401(k) funds early when changing jobs triggers taxes and a 10% penalty, and can also set back your retirement savings accumulation by several years. Another common error is leaving contributions on “autopilot” without adjusting the contribution percentage after a salary increase—a habit that can be corrected using this simulator, as it highlights the concrete financial consequences of small percentage changes.
Frequently Asked Questions
What will my 401(k) savings be worth in 20 years?
It depends on your current account balance, contribution rate, employer contribution, and expected return; enter your details into the calculator above to get a personalized estimate.
What is considered a good return for a 401(k) plan?
Most financial advisors consider a long-term average of 6% to 8% to be reasonable for a broadly diversified portfolio, although actual annual returns may vary.
Can I contribute to both a 401(k) plan and an IRA in the same year?
Yes, contribution limits for 401(k) plans and IRAs are independent; therefore, you can contribute funds to both plans up to their respective annual limits.
What happens to my 401(k) savings if I change employers?
Generally, you can transfer the funds to your new employer’s plan or to an IRA without incurring taxes or penalties, provided the transaction is executed as a “direct rollover.”
In summary
By the time you retire, your 401(k) plan will likely be one of your most important assets—provided you make regular contributions and take full advantage of your employer’s matching contribution. Use the calculator above to see exactly where your current savings rate leads, and adjust it today if the projected outcome doesn’t align with your goals. If you’re also planning for other retirement goals, our retirement corpus calculator can help you map out your broader savings target.