401(k) Contribution Calculator

Your 401(k) is one of the most powerful retirement savings tools available. With employer matching, tax advantages, and compound growth, maximizing your 401(k) contributions can significantly impact your retirement security.

This free 401(k) contribution calculator helps you project your retirement savings, understand employer match benefits, calculate tax savings, and optimize your contribution strategy. It shows you how different contribution rates affect your retirement balance.

Use this tool to plan your 401(k) contributions, see the value of employer matching, and ensure you're on track for retirement.

Follow these steps to plan your 401(k) contributions:

1. 1

   Enter Your Information

   Input your annual salary, current age, and retirement age. This determines how long you have to save and grow your 401(k).

2. 2

   Enter Current 401(k) Balance

   Input how much you've already saved in your 401(k). This is your starting point for future growth calculations.

3. 3

   Set Contribution Rate

   Enter your contribution percentage of salary. Aim for at least enough to get full employer match, then 10-15% total including match.

4. 4

   Enter Employer Match Details

   Enter your employer's match percentage and match limit. For example, if employer matches 50% up to 6% of salary, enter 50% and 6%.

5. 5

   Set Expected Return

   Enter expected annual return (typically 7% for long-term stock market average). This affects growth projections.

6. 6

   Review 401(k) Projection

   See your projected 401(k) balance at retirement, total contributions, interest earned, and tax savings. Use this to plan your retirement savings strategy.

Employer Match: Many employers match a percentage of your contributions (e.g., 50% match up to 6% of salary). This is free money and an instant 50-100% return. Always contribute enough to get the full match—never leave this on the table.

Tax Advantages: Traditional 401(k) contributions are pre-tax, reducing your current taxable income. In the 22% tax bracket, every $1,000 contributed saves $220 in taxes. Plus, investments grow tax-deferred until withdrawal.

Contribution Limits: 2024 limits: $23,000 employee contributions ($30,500 if 50+). Total contributions (employee + employer) can't exceed $69,000 ($76,500 if 50+). These limits increase annually.

Compound Growth: 401(k) investments grow tax-deferred, allowing compound interest to work over decades. Starting early and contributing consistently maximizes growth potential.

1. Maximize Employer Match

Always contribute enough to get your full employer match. This is free money and an instant return. Not getting the full match is like leaving part of your salary on the table.

2. Increase Contributions Over Time

As your income grows, increase your 401(k) contributions. Aim for 10-15% of salary total (including employer match). Even small increases compound significantly over decades.

3. Start Early

Time is your greatest ally. Starting to contribute in your 20s vs. 30s can mean hundreds of thousands more in retirement due to compound interest. Don't wait—start contributing now.

4. Diversify Investments

Don't put all 401(k) money in one type of investment. Diversify across stocks, bonds, and other assets based on your age and risk tolerance. Younger investors can take more risk.

5. Don't Cash Out Early

Avoid withdrawing from 401(k) before retirement. Early withdrawals face 10% penalty plus income taxes, and you lose decades of compound growth. Treat 401(k) as untouchable until retirement.

6. Consider Roth 401(k) Option

If available, consider Roth 401(k) for tax-free withdrawals in retirement. Choose based on current vs. expected future tax rates. Many employers offer both traditional and Roth options.