How the 401(k) projection works
For each year until retirement, the calculator adds your contribution (a percentage of that year's salary), your employer's match, and a year of investment growth on the balance. Contributions are assumed to arrive evenly through the year, so on average they earn half a year of growth in the year they are made. Your salary then rises by the growth rate you choose.
With the limit option on, employee deferrals are capped at the 2026 IRS limits for your age in each year: $24,500, plus $8,000 from age 50, or $11,250 from age 60 to 63. The IRS raises these limits over time, so holding them at 2026 values is a conservative assumption for high earners.
Worked example
A 30-year-old earning $65,000 contributes 8%, gets a 50% match on contributions up to 6% of pay, has $20,000 saved, expects 3% raises and a 6% annual return. By 65 the projected balance is about $1.35 million in future dollars. At 2.5% inflation that is worth roughly $570,000 in today's money, which is why the inflation toggle matters when you judge whether you are on track.
2026 contribution limits
| Limit | 2026 |
|---|---|
| Employee elective deferral | $24,500 |
| Catch-up, age 50+ | $8,000 |
| Higher catch-up, ages 60–63 | $11,250 |
| Total employee + employer | $72,000 |
Starting in 2026, employees aged 50 and over who earned more than $150,000 in FICA wages the year before must make catch-up contributions on a Roth basis.
Ways to improve your projection
- Capture the full match first. It is an immediate return on your contribution.
- Raise your rate 1% a year. Many plans offer automatic escalation, and small increases compound over decades.
- Watch fees. A 1% annual fee can reduce a 35-year ending balance by roughly a fifth compared with a 0.1% index fund.
- Keep short-term savings separate. An emergency fund in savings or a CD avoids early 401(k) withdrawals; see the CD calculator.
Projections are estimates for education only, not investment advice. Returns are not guaranteed.
Frequently asked questions
What is the 401(k) contribution limit for 2026?
Employees can defer up to $24,500 in 2026. Savers aged 50 and over can add an $8,000 catch-up, and those aged 60 to 63 can instead add $11,250. Combined employee and employer contributions are capped at $72,000.
How does an employer match work?
A typical formula is a 50% match on contributions up to 6% of salary. If you earn $60,000 and contribute 6% ($3,600), your employer adds $1,800. Contributing less than the match limit leaves free money on the table.
What rate of return should I assume?
Long-term stock market averages have been around 7% after inflation in the past, but future returns are uncertain. Many planners test 5–7% and look at a range of outcomes rather than one number.
Are the results in today's dollars?
The main balance is in future dollars. Turn on the inflation adjustment to see the value in today's purchasing power.
Does the calculator include taxes?
No. Traditional 401(k) withdrawals are taxed as income in retirement, while qualified Roth 401(k) withdrawals are tax-free. The balance shown is before any taxes or fees.
Sources and official references
- 401(k) Plans – Internal Revenue Service (IRS)
- 401(k) limit increases to $24,500 for 2026 – Internal Revenue Service (IRS)
Last reviewed October 10, 2026. Results are estimates for planning; see our disclaimer.
