How the 401(k) balance is calculated
The calculator repeats four steps for every year until you retire.
- Work out your contribution.Your contribution = salary × your percentage, up to the employee limit for your ageYour salary rises each year by the raise you enter.
- Work out the match. The employer matches a share of what you put in, but only on contributions up to a ceiling.Match = match % × the smaller of (your contribution, ceiling % × salary)
- Add growth. Each year's contribution and match go in as twelve equal parts, one at the end of each month. The yearly return is turned into a monthly rate that compounds to exactly the figure you enter, so 6% means 6% over a full year. Your money and the match are tracked as two separate streams, so the result can show exactly what the match and its growth add up to.
- Convert to today's money. The final balance is divided by the rise in prices between now and retirement.
The limits are exact for 2026. The IRS adjusts them for the cost of living, and future figures are not known, so later years raise them by your inflation figure. Your pay rises once a year by the raise you enter, and the match is capped the same way every year.
The return and inflation boxes are assumptions, not forecasts, and you can change both. This is an estimate. Investments can lose value, and no return is promised by this page or by a plan.
Worked examples
Each example uses a 6% yearly return, a 3% yearly raise and 2.5% inflation. None of these is a forecast.
A 30-year-old on $65,000 collecting the full match
Contributes 6% of pay. The employer matches 50% up to 6% of pay. $10,000 already saved, retiring at 65.
- Your percentage this year$3,900
- 2026 employee limit at this age$24,500
- Your contribution this year$3,900
- Employer match this year$1,950
- Match left unclaimed this year$0
- Your contributions over 35 years$235,802
- Employer match over the same years$117,901
- What the match is worth with its growth$325,312
- Balance at age 65$1,052,797
- In today's money$443,618
Contributing less than the match ceiling
Age 35 on $55,000 with nothing saved yet, contributing 3%. The employer matches 100% up to 5% of pay, so part of the match is never claimed.
- Your percentage this year$1,650
- 2026 employee limit at this age$24,500
- Your contribution this year$1,650
- Employer match this year$1,650
- Match left unclaimed this year$1,100
- Your contributions over 30 years$78,499
- Employer match over the same years$78,499
- What the match is worth with its growth$187,356
- Balance at age 65$374,711
- In today's money$178,641
A 55-year-old whose percentage goes over the limit
Earns $180,000 and wants to contribute 20%, with $400,000 saved. The employer matches 50% up to 6%. The limit at 55 includes the catch-up.
- Your percentage this year$36,000
- 2026 employee limit at this age$32,500
- Your contribution this year$32,500
- Employer match this year$5,400
- Match left unclaimed this year$0
- Your contributions over 10 years$379,379
- Employer match over the same years$61,905
- What the match is worth with its growth$82,637
- Balance at age 65$1,304,311
- In today's money$1,018,926
What a match is worth by salary
A match looks small on one paycheck. Over a career it is a large part of the account. This table uses one example formula, 50% of your contributions up to 6% of pay.
| Salary today | You put in this year | Match this year | Match with its growth at 65 | Balance at 65 | Balance in today's money |
|---|---|---|---|---|---|
| $40,000 | $2,400 | $1,200 | $200,192 | $600,576 | $253,065 |
| $50,000 | $3,000 | $1,500 | $250,240 | $750,720 | $316,332 |
| $60,000 | $3,600 | $1,800 | $300,288 | $900,864 | $379,598 |
| $75,000 | $4,500 | $2,250 | $375,360 | $1,126,080 | $474,498 |
| $100,000 | $6,000 | $3,000 | $500,480 | $1,501,440 | $632,663 |
| $150,000 | $9,000 | $4,500 | $750,720 | $2,252,160 | $948,995 |
With this formula the match is one third of the final balance, because it is half of what you put in.
2026 limits and catch-up contributions
- Employee limit: $24,500. This covers your traditional and Roth 401(k) deferrals together, across every plan you are in.
- Catch-up from age 50: $8,000 more, for $32,500. You qualify in the year you turn 50. You do not need to be behind on saving.
- Higher catch-up at 60 to 63: $11,250 in place of $8,000, for $35,750. It applies in the years you reach 60, 61, 62 or 63. At 64 the regular catch-up returns.
- Overall limit: $72,000 for your contributions and your employer's together, not counting catch-up, and never more than your pay.
- Pay that counts: plans can only use the first $360,000 of your pay when working out contributions.
Catch-up contributions are only available if your plan allows them. From 2026, if your wages from the employer were above $150,000 in the previous year, catch-up contributions must be made as Roth contributions in plans that offer a Roth option.
The IRS goes by your age at the end of the calendar year. The calculator goes by the age you type. If you turn 50 or 60 later this year, enter that age to see the higher limit.
Vesting: when the match becomes yours
Vesting means ownership. Money you contribute is always 100% yours. Employer contributions can follow a vesting schedule set by your plan. The IRS describes two kinds. With cliff vesting you own nothing of the employer money at first and all of it after a set period, such as 3 years. With graded vesting your share rises each year, for example from 20% after 2 years to 100% after 6.
Schedules differ from plan to plan, and some plans vest the match at once. Your plan documents or your plan administrator can tell you yours. The calculator assumes you stay long enough to keep all of the match.
Traditional and Roth 401(k)
With a traditional 401(k), contributions come out of your pay before federal income tax, and you pay income tax on the money when you withdraw it. With a Roth 401(k), contributions are taxed in the year you make them, and withdrawals of contributions and earnings are tax-free if the account has been held at least 5 years and you are 59½ or older, disabled, or the payment follows your death. Both types share the one $24,500 limit, and the projected balance is the same either way. Only the tax differs.
What the result leaves out
- Tax on withdrawals. The balance is before tax.
- Fees. Plan and fund fees lower your return. Enter a lower return to allow for them.
- Uneven returns. Markets rise and fall and can lose money. A steady return is a way to picture growth, not a promise.
- Job changes and vesting. A new employer may match differently, and unvested match can be lost.
- Match rules with tiers. Some plans match 100% on the first part of pay and 50% on the next. Enter the closest single formula.
Common mistakes
- Contributing below the match ceiling. Every dollar under it leaves employer money unclaimed.
- Mixing up the two percentages. "50% up to 6%" is 3% of pay from the employer, not 50% of pay and not 6%.
- Thinking the match uses up your limit. It does not. Your $24,500 is for your own deferrals.
- Comparing a future balance with today's prices. A balance 35 years away is in future dollars. The today's money line is the one that matches prices you know.
- Forgetting the catch-up. From 50 the limit is higher, and higher again at 60 to 63.
Questions people ask
What is the 401(k) contribution limit for 2026?
Employees can defer up to $24,500. If you are 50 or older you can add a catch-up of $8,000, for $32,500. If you reach age 60, 61, 62 or 63 in 2026, the catch-up is $11,250, for $35,750.
Does the employer match count toward my limit?
No. The $24,500 limit is for your own deferrals. Employer money counts toward a separate overall limit, which is $72,000 for 2026 for your contributions and your employer's together, not counting catch-up.
What does "50% match up to 6%" mean?
Your employer adds 50 cents for every dollar you contribute, but only on contributions up to 6% of your pay. Contribute 6% and you get 3% of pay from the employer. Contribute 3% and you get 1.5%.
How much should I contribute to get the full match?
At least the "up to" percentage in your plan's match formula. If the formula is 100% up to 4%, contributing 4% of pay collects all of it. The calculator warns you when your percentage is below that line.
What is vesting?
Vesting means ownership. Your own contributions are always 100% yours. Employer contributions can become yours over a few years of service under the plan's vesting schedule, so leaving early can mean giving some of the match back.
Is a traditional or Roth 401(k) better?
A traditional 401(k) lowers your taxable pay now and is taxed when you withdraw. A Roth 401(k) is taxed now and qualified withdrawals are tax-free. Which is better depends on your tax rate now compared with your rate in retirement.
What if I have two jobs with 401(k) plans?
The $24,500 employee limit applies to you, not to each plan. The IRS has you add up your deferrals to all plans to check whether you are over it.
Is the balance shown before or after tax?
Before tax. Withdrawals from a traditional 401(k) are taxed as income, so you will keep less than the balance shown. Qualified withdrawals from a Roth 401(k) are tax-free.
Related calculators
Sources
- IRS Notice 2025-67: 2026 amounts relating to retirement plans and IRAs
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- IRS: 401(k) and profit-sharing plan contribution limits
- IRS: Retirement topics, catch-up contributions
- IRS: Retirement topics, vesting
- IRS: 401(k) plan overview
- IRS: Roth comparison chart (qualified distribution rules; its dollar limits are for earlier years)
Figures last checked against these sources on October 10, 2026. This page gives general information and estimates, not tax, legal or financial advice.