Finance
401(k) Growth Calculator
Calculate long-term 401(k) retirement plan value, including employer matching contributions.
Inputs
Results
Estimated 401(k) Balance
$0.00
Your Cumulative Contributions
$0.00
Employer Matching Contributions
$0.00
Total Investment Growth
$0.00
How It Works
The 401(k) calculator projects the growth of a tax-advantaged retirement account. It takes your base salary, models annual salary growth, and calculates contributions from both you and your employer. Matching structures are computed as: `Salary * Min(Contribution, Limit) * MatchRate`. The annual sum is added to the starting balance and compounded annually using the expected market return rate.
Formula Used
Employer Match = Salary × Min(Contribution Rate %, Match Limit %) × Match Rate %
This formula computes the employer's matching contribution, which is usually capped at a certain percentage of the employee's salary and scaled by a matching rate. The employee and employer contributions are combined and compounded annually.
Worked Example
Here is a step-by-step example of how these values are calculated:
Salary
$80,000
Contribution
8%
Employer Match
50% up to 6%
Balance
$20,000
Return
7.5%
Term
25 Years
Salary Growth
3%
Result: Estimated 401(k) Balance: $725,123.86 (Your Contributions: $233,356.12, Employer Match: $87,508.55, Portfolio Growth: $384,259.19).
Frequently Asked Questions
What does 'matching limit' mean in a 401(k)?
The match limit is the maximum percentage of your salary your employer will match. For example, if they offer a '50% match up to 6%', they will contribute up to 3% of your salary, provided you contribute at least 6%.
What are the 2026 401(k) contribution limits?
As of recent tax adjustments, employee contribution limits are capped annually ($23,500 for under 50, with catch-up limits of $7,500 for age 50-60). This calculator does not automatically cap contributions, so be mindful not to exceed legal thresholds.