Project your 401(k) balance at retirement — and see how much of it comes from your contributions, your employer's match, and compound growth.
How Your 401(k) Grows
A 401(k) builds wealth from three sources: the money you contribute, the match your employer adds, and the compound growth on both. Because contributions are made with pre-tax dollars and grow tax-deferred, more of your money stays invested and working over the decades until retirement.
Always Capture the Full Match
An employer match is free money — often 50% or 100% of your contributions up to a percentage of your salary. A "50% match up to 6%" means if you contribute 6% of pay, your employer adds another 3%. Contributing less than the cap leaves guaranteed return on the table.
Tip: At minimum, contribute enough to get the full employer match. It's an immediate 50–100% return that no other investment can reliably match.
Contribution Limits
The IRS sets an annual employee contribution limit (with a higher cap for those 50 and older). Employer match is on top of your contributions. This calculator assumes a steady salary and contribution rate; raises and bonuses can push your balance even higher.
Frequently Asked Questions
How does an employer 401(k) match work?
Employers match a portion of what you contribute, up to a limit. A common formula is 50% of your contributions up to 6% of salary. If you earn $75,000 and contribute 6%, you add $4,500 and your employer adds $2,250 — free money toward retirement.
How much should I contribute to my 401(k)?
At minimum, contribute enough to capture the full employer match. Many advisors suggest working toward 15% of salary in total, including the match. The IRS sets an annual maximum that adjusts most years.
What return should I expect?
A diversified portfolio has historically returned around 7% per year after inflation, but returns vary and aren't guaranteed. Younger savers often hold more stocks for higher expected growth; allocations typically get more conservative near retirement.
What happens to my 401(k) if I change jobs?
You can leave it with the old plan, roll it into your new employer's plan, or roll it into an IRA. Rolling over avoids taxes and penalties and keeps your money growing tax-deferred. Cashing out early usually triggers taxes plus a 10% penalty.
Is a 401(k) better than an IRA?
They serve different roles. A 401(k) offers higher contribution limits and an employer match; an IRA (especially a Roth) offers more investment choices and tax flexibility. Many people use both — capturing the 401(k) match first, then funding an IRA.