How to use the 401k calculator
Enter your current age, target retirement age, annual salary, and current 401k balance. Set your contribution percentage and your employer's match percentage. The calculator compounds monthly using your expected annual return rate. The projected balance assumes contributions and match continue every month until retirement.
401k contribution limits and rules
For 2024, the IRS 401k employee contribution limit is $23,000 ($30,500 if age 50+). Employer contributions do not count toward this limit. A common employer match is 3–6% of salary. The most impactful factor over long time horizons is starting early — an extra 5 years of compounding at 7% roughly adds 40% to the final balance.
FAQ
What is an employer match?
Many employers match a percentage of your contributions up to a cap. For example, a 3% match means if you contribute at least 3% of your salary, your employer also adds 3% — effectively doubling your contribution up to that limit. Always contribute at least enough to get the full match — it is free money.
What annual return should I use?
The US stock market has historically averaged around 7–10% annually before inflation. A commonly used conservative-to-moderate estimate is 6–7% for a diversified portfolio. More aggressive portfolios may use 8–10%. The calculator uses 7% as the default.