Finance · Retirement
401(k) & IRA Calculator
Project your retirement savings at your target age, including employer match, compound growth and the annual taxes you save with pre-tax contributions. Free and no sign-up.
How the 401(k) & IRA calculator works
This tool projects your retirement account balance year by year and shows how much of the final total comes from your own money, your employer's match, and investment growth.
- Annual contribution = your salary × your contribution percentage. Example: $80,000 × 10% = $8,000 per year.
- Employer match = the lesser of your contribution rate or 6% × salary × match rate. Example: min(10%, 6%) × $80,000 × 50% = $2,400 per year.
- Years invested = retirement age − current age.
- Compound growth — each year, your balance grows by the expected return, then your contribution and employer match are added:
balance = balance × (1 + return) + contribution + match. - Annual tax savings = your annual contribution × marginal tax rate. Pre-tax 401(k) contributions reduce your taxable income for the year.
The projected balance is the largest number shown. The breakdown separates your starting balance, total contributions, employer match, and the compound growth those amounts earned.
Example projection
| Input | Value |
|---|---|
| Current / retirement age | 35 / 65 |
| Current balance | $25,000 |
| Salary · contribution | $80,000 · 10% |
| Employer match | 50% up to 6% |
| Expected return | 7% |
| Approx. balance at 65 | ~$1.2M |
Things to keep in mind
Always contribute enough to get the full match
Employer matching is free money and an immediate 100% (or 50%) return on the matched portion. If your plan matches up to 6% of salary, contributing less than 6% leaves part of your compensation on the table.
This is a simplified projection
The calculator assumes a constant salary, contribution rate and return every year, and does not account for inflation, fees, IRS contribution limits, or future tax changes. Real returns vary year to year. Use it to compare scenarios, not as an exact forecast.
Frequently asked questions
How much will my 401(k) be worth at retirement?
It depends on your balance, annual contributions, employer match, expected return and years until retirement. Early contributions compound the most. This tool projects your balance year by year so you can see the estimated total.
How does employer matching work?
Many employers match a percentage of your contribution up to a limit — commonly 50% up to the first 6% of salary. On an $80,000 salary contributing 6%+, that adds about $2,400 per year for free. The calculator caps the match at the first 6% by default.
How much does a 401(k) save me in taxes?
Traditional 401(k) contributions are pre-tax, lowering your taxable income. Contributing $10,000 at a 22% marginal rate saves roughly $2,200 that year. You pay income tax later on withdrawals.
What return rate should I assume?
A common long-term assumption for a diversified portfolio is 6–8% annually before inflation. This tool defaults to 7%. Try a conservative 5% too, since past performance does not guarantee future results.
What's the difference between a 401(k) and an IRA?
A 401(k) is employer-sponsored, often with a match and higher limits. An IRA is an individual account with more choices but lower limits and no match. This tool works for either — set the employer match to 0% for an IRA.
Why the employer match is the most important number
If you take only one idea from this calculator, make it this: contribute at least enough to capture your full employer match. The match is part of your compensation that you only receive if you participate. A common formula is a 50% match on the first 6% of salary you contribute. On an $80,000 salary, contributing 6% ($4,800) earns you an extra $2,400 from your employer every year — an instant 50% return on that portion before the market does anything at all.
Over a 30-year career, that $2,400 annual match compounds into a six-figure sum on its own. Skipping it is one of the costliest mistakes in retirement planning. Some plans use different formulas — a dollar-for-dollar (100%) match up to 3%, or a tiered structure — so check your plan documents and set your contribution rate to capture every matched dollar before directing extra savings elsewhere.
Vesting: when the match is truly yours
Employer-matched money may come with a vesting schedule, meaning you earn ownership of it gradually. With "cliff" vesting you might own 0% until a set anniversary (often three years) and then 100% all at once. With "graded" vesting you own a rising percentage each year — for example 20% per year over five years. Your own contributions are always 100% yours immediately. If you are considering changing jobs, knowing your vesting status can be worth thousands of dollars in timing.
Traditional vs. Roth: when do you pay tax?
The two main flavors of retirement account differ in one key way — when you pay income tax.
- Traditional 401(k) / IRA: Contributions are made pre-tax, lowering your taxable income today. The money grows tax-deferred, and you pay ordinary income tax when you withdraw in retirement. This is the scenario the "annual tax savings" figure in this calculator estimates.
- Roth 401(k) / IRA: Contributions are made with after-tax dollars, so there is no upfront deduction. In exchange, qualified withdrawals in retirement — including all the growth — are entirely tax-free.
The simplest rule of thumb: choose Traditional if you expect to be in a lower tax bracket in retirement than you are now, and Roth if you expect to be in the same or a higher bracket later. Many people split contributions between both to hedge against uncertain future tax rates. This calculator models the Traditional tax deferral; if you choose Roth, mentally set the annual tax savings to zero and treat the final balance as fully spendable after retirement.
Contribution limits change every year
The IRS sets annual limits on how much you can contribute to a 401(k) and an IRA, and these figures are adjusted periodically for inflation. There are separate, higher "catch-up" limits for savers age 50 and older. Because these numbers can change from one year to the next, this calculator does not hard-code a limit — always check the current IRS limits for the year before maxing out your contributions.
As a rough orientation only, 401(k) employee deferral limits in recent years have been in the low-to-mid $20,000s, with IRA limits around $7,000, plus additional catch-up amounts for those 50+. Treat these as approximate; confirm the exact current figures on the official IRS website before relying on them. Exceeding the limit can create tax penalties, so it is worth verifying.
Early withdrawal penalties
Retirement accounts are designed to be left alone until retirement, and the tax code enforces this. Withdrawing from a Traditional 401(k) or IRA before age 59½ generally triggers a 10% early-withdrawal penalty on top of ordinary income tax on the amount withdrawn. A $20,000 early withdrawal could easily lose a third or more to combined tax and penalty.
There are narrow exceptions — certain medical expenses, a first-home purchase from an IRA up to a limit, qualified disability, and others — but they are specific and worth confirming before acting. A common middle-ground option is a 401(k) loan, which lets you borrow from your own balance and repay it with interest, though it carries its own risks if you leave your job. The general principle stands: cashing out early sacrifices both the penalty amount and decades of future compounding.
Drawing down your savings in retirement
Building the balance is only half the journey; making it last is the other half. A widely discussed starting point is the 4% guideline, the idea that withdrawing about 4% of your portfolio in the first year of retirement and adjusting for inflation thereafter has historically given a high chance of the money lasting roughly 30 years. It is a guideline, not a guarantee — market sequence, longevity, and spending flexibility all change the picture.
Other considerations in the withdrawal phase include Required Minimum Distributions (RMDs), which force withdrawals from Traditional accounts starting at an age set by current law, and the order in which you tap taxable, tax-deferred, and Roth accounts to manage your tax bracket. These decisions grow more important as your balance grows, and they are an area where a fee-only financial advisor can add genuine value.
Common misconceptions
"I'm young, retirement can wait"
The dollars you contribute in your twenties have the most decades to compound, which usually makes them the most valuable of your entire career. Waiting even five years can meaningfully reduce your final balance.
"I'll just rely on Social Security"
For most workers, government benefits replace only a portion of pre-retirement income. A workplace plan is designed to fill the gap, and the employer match makes it one of the most efficient ways to do so.
"A 401(k) loan is free money"
Borrowing from your plan removes that money from the market while it is out, and an unpaid balance after leaving a job can be treated as a taxable early withdrawal. Use loans cautiously.
Smart ways to use this calculator
- Find your "full match" rate. Adjust your contribution percentage until you capture the entire employer match, then decide how much extra to add.
- Compare retirement ages. See how working three or five more years changes your projected balance — the late years of compounding are surprisingly powerful.
- Model conservative and optimistic returns. Run 5%, 7%, and 8% to understand a realistic range instead of one fixed forecast.
- Estimate an IRA. Set the employer match to 0% to model an individual account with no company contribution.
More questions
Should I contribute to a 401(k) or pay off debt first?
A common approach is to contribute at least enough to capture the full employer match (because it is an immediate return), then aggressively pay down high-interest debt such as credit cards, then return to maximizing retirement contributions. The match is usually too valuable to skip entirely.
What happens to my 401(k) when I change jobs?
You generally have options: leave it in the old plan, roll it into your new employer's plan, or roll it into an IRA. A direct rollover avoids taxes and penalties. Cashing it out triggers tax and, if you are under 59½, the early-withdrawal penalty — usually the least attractive option.
How does inflation affect my projected balance?
This calculator shows nominal dollars and does not adjust for inflation, which reduces future purchasing power over time. To approximate your balance in today's dollars, enter a lower "real" return rate (for example, your expected return minus your inflation estimate).
Can I contribute to both a 401(k) and an IRA?
In many cases yes, though the tax deductibility of IRA contributions can phase out at higher incomes if you also have a workplace plan. Contribution limits apply separately to each account type. Check the current IRS rules for your income and situation.
What is a "catch-up" contribution?
Savers age 50 and older are allowed to contribute an additional amount above the standard annual limit, letting them accelerate savings as retirement approaches. The exact catch-up figure is set by the IRS and can change each year, so verify the current amount.
Does this calculator include fees?
No. Investment fees and plan administrative costs reduce real-world returns, sometimes significantly over decades. If your funds carry meaningful expense ratios, consider modeling a slightly lower return rate to account for them.