401(k) Calculator: How Much Will Your 401(k) Grow?
This 401k calculator shows how your 401(k) could grow with your contributions, your employer match and time. Enter your salary, contribution rate, the match formula, your current balance and an expected return.
Quick answer
With a $60,000 salary, contributing 6% with a 50% match up to 6%, starting from $10,000 at 7% a year, your 401(k) could reach about $630,152 in 30 years. You put in $3,600 a year and your employer adds $1,800.
How to use the 401k calculator
- Yearly salary: your gross pay before taxes.
- Your contribution: the percent of salary you put in.
- Employer match and limit: for example “50% of contributions up to 6% of salary”.
- Current balance, years and return: where you start, how long you invest and a long-term average return.
What contribution rate does
| Your contribution | You put in per year | Employer adds per year | Balance after 30 years |
|---|---|---|---|
| 3% | $1,800 | $900 | $355,658 |
| 6% | $3,600 | $1,800 | $630,152 |
| 10% | $6,000 | $1,800 | $874,146 |
Going from 3% to 6% doubles both your contribution and your match, which is why getting the full match is the first rule of 401(k) investing.
Understanding the employer match
A match is extra money your employer adds when you contribute. “50% up to 6%” means that if you contribute 6% of your salary, your employer adds 3%. Contributing more than 6% still helps you, but the match stops at that limit. Some plans have a vesting schedule, meaning you keep the match only after a certain number of years. See 401(k) employer match explained.
Contribution limits and rules
- The IRS sets a yearly limit on employee contributions, with extra catch-up contributions from age 50. Check the current limits on IRS.gov.
- Traditional 401(k) contributions lower your taxable income now; withdrawals are taxed later.
- Roth 401(k) contributions are taxed now; qualified withdrawals can be tax-free.
- Withdrawals before 59½ can face a 10% penalty plus income tax, with some exceptions.
What this 401k calculator means for you
- Always contribute enough to get the full match.
- Increase your contribution by 1% each year until you reach your target.
- Low-cost index funds help more of your money compound.
Frequently asked questions
How much should I contribute to my 401(k)?
At least enough to get the full employer match. Many guidelines suggest 10% to 15% of pay in total, including the match.
How does a 401(k) grow?
Your contributions and the match are invested, and returns compound over time. Fees and market ups and downs affect the result.
What return should I use?
Use a cautious long-term estimate and test a range, such as 5% to 7%.
Is the employer match free money?
It is part of your compensation, but you usually only get it if you contribute, and it may vest over time.
Can I have a 401(k) and an IRA?
Yes, many people use both. Income limits can affect IRA deductions or Roth contributions.
Related guides and calculators
- 401(k) employer match explained
- Roth IRA calculator
- Retirement savings calculator
- Investing $500 a month for 30 years
Sources
- IRS: 401(k) plans
- Investor.gov (U.S. SEC): Compound interest calculator
- MonetaryReports: How we calculate
This guide is for educational purposes only and is not financial advice. The figures are estimates before taxes, fees and inflation, and real rates, returns and rules change over time.
