T TechTools365 PennyMath

401(k) Calculator

See how your retirement savings grow over time

Project your 401(k) balance at retirement. Adjust your monthly contribution, expected return, and time horizon to see the impact of small changes over decades.

$
$500$1,000,000
%
1%30%
Yr
1 Yr40 Yr
Invested Amount$540,000
Est. Returns$1,300,631
Total Value$1,840,631

The Power of Starting Early

Compound growth is the single most important variable in retirement savings — and it rewards time more than amount. Same monthly contribution ($500/month at 7% return):

  • Starting at 25, ending at 65 (40 years): $1,310,000
  • Starting at 35, ending at 65 (30 years): $611,000
  • Starting at 45, ending at 65 (20 years): $260,000
  • Starting at 55, ending at 65 (10 years): $86,000

Delaying 10 years cuts your retirement balance by more than half. The first $500/month you ever invest is the most valuable money you'll ever have — it has 40+ years to compound. There's no catch-up move that beats time in the market.

Don't Leave the Employer Match on the Table

If your employer matches 50% of contributions up to 6% of salary (a common formula), every dollar you contribute up to that 6% comes back with a 50-cent bonus immediately. That's a guaranteed 50% return — no investment in the world beats this.

On a $80,000 salary, 6% is $4,800/year of your money plus $2,400/year of free employer money = $7,200/year going into retirement. Over 30 years at 7%, that employer match alone grows to $241,000 in tax-deferred wealth — money you got for filling out a benefits form.

2026 401(k) Limits

  • Employee contribution: $23,500/year ($1,958/month max)
  • Catch-up contribution (age 50+): additional $7,500/year
  • Combined employee + employer limit: $70,000 ($77,500 with catch-up)
  • Highly compensated employees: may face additional limits based on plan's non-discrimination testing

Frequently Asked Questions

How much should I contribute to my 401(k)?
At minimum, contribute enough to capture your full employer match — it's a guaranteed instant return. After that, aim for 15% of gross income total (including employer contributions). If you can't get to 15% today, escalate by 1% each year — most people get there within 5-7 years.
What's the 2026 contribution limit?
$23,500 employee contribution, plus a $7,500 catch-up if you're 50+. The combined employee + employer limit is $70,000 ($77,500 with catch-up).
Traditional vs Roth 401(k)?
Roth makes sense if you expect to be in a higher tax bracket in retirement (younger workers, growing earners). Traditional makes sense if you'll be in a lower bracket later. Many people split — diversifying tax exposure is reasonable hedging.
What return rate should I plan for?
7% per year is a reasonable real (inflation-adjusted) baseline based on long-term S&P 500 history. Some years will be -30%, others +30%. Over 20-30 year horizons, the average lands around 7-10% nominal. Plan around 7%, celebrate if you get more.
Can I take money out early?
Generally not without penalty — withdrawals before age 59½ trigger a 10% penalty plus income tax. Exceptions exist (hardship, first-time home purchase, certain medical), but the math almost never works out in your favor. Loans against your 401(k) are usually a better path if you need cash, but check fees first.

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