{
  "id": "401k",
  "version": "e5c65d5fc9b7",
  "status": "published",
  "name": "401k Calculator",
  "question": "How much will my 401(k) be worth?",
  "summary": "Projects a 401(k) balance at retirement from your salary, your contribution rate, and your employer match, within the IRS contribution limits.",
  "category": "finance",
  "subcategory": "retirement",
  "url": "https://www.acalculator.org/finance/401k-calculator",
  "markdown": "https://www.acalculator.org/finance/401k-calculator.md",
  "kind": "schedule",
  "method": "Each year, you put in min(your % × salary, the IRS limit for your age) and the employer adds match % × min(your contribution, match cap % × salary), within the section 415(c) limit; both are spread over 12 months, and the balance grows each month at (1 + R)^(1/12) − 1.",
  "assumptions": [
    "The IRS limits stay at their 2026 amounts for every future year. The IRS usually raises them with inflation.",
    "Contributions are spread evenly over the 12 months and added at the end of each month.",
    "The yearly return stays the same every year. Real returns go up and down, and can be negative.",
    "Your salary rises by the yearly raise at the start of each new year.",
    "Fees and taxes are not included. Withdrawals from a traditional 401(k) are taxed as income.",
    "This is an estimate for planning, not financial advice."
  ],
  "inputs": {
    "$schema": "https://json-schema.org/draft/2020-12/schema",
    "type": "object",
    "properties": {
      "age": {
        "title": "Your age",
        "description": "Your age at the end of this year. The age in later years is this plus the years that pass.",
        "type": "integer",
        "minimum": 18,
        "maximum": 79
      },
      "retire": {
        "title": "Retirement age",
        "description": "The age you stop contributing. Contributions run for (retirement age − your age) years.",
        "type": "integer",
        "minimum": 19,
        "maximum": 80
      },
      "balance": {
        "title": "401(k) balance today",
        "description": "What is in your 401(k) now.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 1000000000
      },
      "salary": {
        "title": "Yearly salary",
        "description": "Your pay this year, before tax.",
        "type": "number",
        "x-unit": "USD",
        "minimum": 0,
        "maximum": 100000000
      },
      "pct": {
        "title": "You contribute",
        "description": "The percent of your salary you put in, before the IRS limit.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 100
      },
      "match": {
        "title": "Employer match",
        "description": "The percent of your contribution your employer adds, for example 50% or 100%.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 200
      },
      "cap": {
        "title": "Match stops at",
        "description": "The employer matches your contributions only up to this percent of your salary.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 100
      },
      "rate": {
        "title": "Expected yearly return",
        "description": "The yearly return, as the percent the balance grows in a year. It stays the same every year.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 30
      },
      "raise": {
        "title": "Yearly raise",
        "description": "The percent your salary goes up at the start of each new year.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 20
      },
      "inflation": {
        "title": "Prices rise each year by",
        "description": "The yearly inflation rate used to show the balance at retirement in today’s money.",
        "type": "number",
        "x-unit": "percent",
        "minimum": 0,
        "maximum": 20
      }
    }
  },
  "outputs": {
    "total": {
      "label": "At retirement you’ll have",
      "description": "The 401(k) balance at the end of the last month before retirement.",
      "format": "money"
    },
    "start": {
      "label": "Balance today",
      "description": "The balance you start with.",
      "format": "money"
    },
    "yours": {
      "label": "Your contributions",
      "description": "Everything you put in from now until retirement.",
      "format": "money"
    },
    "employer": {
      "label": "Employer contributions",
      "description": "Everything your employer puts in from now until retirement.",
      "format": "money"
    },
    "growth": {
      "label": "Investment growth",
      "description": "The balance at retirement minus today’s balance and all contributions.",
      "format": "money"
    },
    "real": {
      "label": "In today’s money",
      "description": "The balance at retirement divided by (1 + inflation) to the power of the years.",
      "format": "money"
    },
    "yearYou": {
      "label": "You put in this year",
      "description": "Your contribution this year, after the IRS limit.",
      "format": "money"
    },
    "yearEmployer": {
      "label": "Your employer adds this year",
      "description": "Your employer’s contribution this year, after the IRS limits.",
      "format": "money"
    },
    "limit": {
      "label": "Your IRS limit this year",
      "description": "The most you can put in this year at your age: $24,500 plus any catch-up (2026 limits).",
      "format": "money"
    }
  },
  "defaultAnswer": {
    "inputs": {
      "age": 30,
      "retire": 67,
      "balance": 25000,
      "salary": 75000,
      "pct": 10,
      "match": 50,
      "cap": 6,
      "rate": 7,
      "raise": 3,
      "inflation": 3
    },
    "outputs": {
      "total": 2628812.967768777,
      "start": 25000,
      "yours": 496306.669460688,
      "employer": 148892.0008382064,
      "growth": 1958614.297469883,
      "real": 880607.4886308016,
      "yearYou": 7500,
      "yearEmployer": 2250,
      "limit": 24500
    },
    "text": "At 7% a year, your 401(k) grows to $2,628,812.97 by age 67, including $148,892.00 from your employer."
  },
  "examples": [
    {
      "given": {
        "age": 30,
        "retire": 31,
        "balance": 0,
        "salary": 60000,
        "pct": 10,
        "match": 50,
        "cap": 6,
        "rate": 0
      },
      "expect": {
        "total": 7800,
        "yearYou": 6000,
        "yearEmployer": 1800
      },
      "source": "hand calculation in content.mdx: 10% of 60,000; 50% of the first 6% (3,600)"
    },
    {
      "given": {
        "age": 55,
        "retire": 56,
        "balance": 0,
        "salary": 300000,
        "pct": 20,
        "match": 100,
        "cap": 6,
        "rate": 0
      },
      "expect": {
        "yearYou": 32500,
        "yearEmployer": 18000,
        "total": 50500,
        "limit": 32500
      },
      "source": "IRS IR-2025-111: 2026 deferral limit $24,500 plus $8,000 catch-up at 50 or older; hand calculation"
    },
    {
      "given": {
        "age": 61,
        "retire": 62,
        "balance": 0,
        "salary": 300000,
        "pct": 20,
        "match": 100,
        "cap": 6,
        "rate": 0
      },
      "expect": {
        "yearYou": 35750,
        "limit": 35750
      },
      "source": "IRS IR-2025-111: $24,500 plus the $11,250 catch-up for ages 60 to 63 in 2026"
    },
    {
      "given": {
        "age": 40,
        "retire": 41,
        "balance": 0,
        "salary": 350000,
        "pct": 10,
        "match": 200,
        "cap": 25,
        "rate": 0
      },
      "expect": {
        "yearYou": 24500,
        "yearEmployer": 47500,
        "total": 72000
      },
      "source": "IRS 401(k) contribution limits page: 2026 annual additions limit $72,000, catch-ups excluded; hand calculation"
    },
    {
      "given": {
        "age": 30,
        "retire": 40,
        "balance": 10000,
        "salary": 50000,
        "raise": 0,
        "pct": 6,
        "match": 100,
        "cap": 6,
        "rate": 7
      },
      "expect": {
        "total": 105197.37920096336,
        "yours": 30000,
        "employer": 30000
      },
      "source": "hand calculation in content.mdx: 10,000 × 1.07^10 plus 500 a month for 120 months"
    }
  ],
  "sources": [
    "Internal Revenue Service, IR-2025-111 (November 13, 2025): 401(k) limit increases to $24,500 for 2026. https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500",
    "Internal Revenue Service, Retirement topics: 401(k) and profit-sharing plan contribution limits (annual additions $72,000 in 2026). https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits",
    "Internal Revenue Service, Retirement topics: catch-up contributions. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-catch-up-contributions",
    "Internal Revenue Service, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs. https://www.irs.gov/taxtopics/tc558",
    "U.S. Securities and Exchange Commission, Investor.gov: 401(k) plan. https://www.investor.gov/introduction-investing/investing-basics/glossary/401k-plan",
    "Social Security Administration, Benefits Planner: born in 1960 or later. https://www.ssa.gov/benefits/retirement/planner/1960.html"
  ],
  "related": [
    "roth-ira",
    "ira",
    "retirement-withdrawal"
  ],
  "changelog": []
}