401(k) Calculator — 2026

A 401(k) is an employer-sponsored retirement savings plan that allows pre-tax (Traditional) or post-tax (Roth) contributions to grow tax-advantaged until retirement. In 2026, the IRS contribution limit is $23,500 (under 50) or $31,000 (age 50+). This calculator projects your balance at retirement using compound growth, models your employer match, and shows estimated monthly income using the industry-standard 4% withdrawal rule.

How 401(k) Growth Is Calculated

Your 401(k) grows through compound interest — your contributions earn returns, and those returns earn returns. The standard future value formula for regular contributions is:

FV = PV × (1+r)ⁿ + PMT × [(1+r)ⁿ − 1] ÷ r
VariableDefinition
FVFuture Value — your projected 401(k) balance at retirement
PVPresent Value — your current 401(k) balance today
PMTMonthly contribution (your contribution + employer match) ÷ 12
rMonthly return = Annual expected return ÷ 12
nNumber of months until retirement

Example: Starting with $25,000 at age 30, contributing $500/month (plus $150 employer match = $650/month total) at 7% annual return, you'll accumulate approximately $1.02M by age 65 — enough to generate $40,800/year ($3,400/month) using the 4% withdrawal rule.

💡 The Single Best 401(k) Move

Always contribute at least enough to capture your full employer match first. If your employer matches 50¢ for every $1 you contribute up to 6% of salary, that's an immediate 50% return on your investment before any market growth. Failing to capture this match is the equivalent of turning down a guaranteed 50% raise. After the match, the priority order is: Roth IRA ($7,000/year), then back to the 401(k) to hit the $23,500 limit. This sequence optimizes tax diversification across both pre-tax and post-tax retirement buckets.

401(k) Retirement Calculator — 2026

2026 IRS Limits: Under 50 → $23,500/yr  |  Age 50+ → $31,000/yr (includes catch-up)  |  §415 combined max → $70,000/yr

Your 401(k) Details

10%
Annual contribution: $8,000

e.g., 50 = 50¢ per $1

e.g., 6 = matched up to 6%

Historical S&P 500 avg ≈ 10% nominal, ~7% inflation-adjusted

Retirement Projection

Projected Balance at Age 65

$1,848,568

Over 35 years

Your Annual Contribution$8,000
Employer Annual Match+$2,400
Total Annual$10,400
Total Contributions$389,000
Investment Growth+$1,459,568

Estimated Retirement Income (4% Rule)

Monthly$6,162
Annual$73,943

Traditional vs. Roth (After-Tax Value)

Traditional

$1,441,883

After 22% tax at withdrawal

Saves $1,760/yr now

Roth

$1,441,883

100% tax-free at retirement

Growth Milestones

Age 40$200,248
Age 50$552,438
Age 60$1,260,221
Age 65$1,848,568
2026 IRS Limits: Employee deferral limit is $23,500 (under 50) or $31,000 (50+). Employer contributions are welcome up to the §415 combined limit of $70,000. This calculator assumes steady contributions and returns; actual results will vary.