US 401k Calculator: Retirement Growth and Employer Match

401(k) projection: employer match, raises and inflation

The tool projects your 401(k) year by year: your deferral as a percentage of salary, capped at $24,500 in 2026 ($32,500 from age 50), the employer match and investment return, with an annual pay rise. It then converts the final balance into today's dollars and into a monthly income at a withdrawal rate of 4% by default.

The yearly calculation

• Your deferral = salary × chosen rate, capped at $24,500 ($24,500 + $8,000 = $32,500 in the year you turn 50 and after).
• Employer match = salary × min(your rate, match cap) × match rate. With a 50% match up to 6% of pay, deferring 8% earns no more match than deferring 6%.
• Growth = (opening balance + half of the year's contributions) × return, as if contributions were spread over the year.
• Salary then rises by the annual raise.

Example (default values)

Age 30, retiring at 65, $75,000 salary, $25,000 balance, 8% deferral, 50% match up to 6%, 2.5% raises, 7% return, 2.5% inflation. In year one you put in $6,000 and the employer $2,250. After 35 years the balance reaches $1,842,480: $329,569 of your deferrals, $123,588 of match and $1,364,322 of growth, or $776,368 in today's dollars. A 4% withdrawal gives $6,142 a month, $2,588 in today's money.

Limits

• The 2026 IRS limits are applied to every year without indexation, while salary keeps rising.
• The enhanced $11,250 catch-up for ages 60 to 63 (SECURE 2.0) is not modelled.
• No tax is deducted, although traditional 401(k) withdrawals are taxable. To compare Traditional and Roth, use the 401(k) and Roth IRA simulator; this tool focuses on match, raises and inflation instead.
• Constant return; the 4% rule is a convention, not a guarantee. This is an estimate, not financial advice.

Sources and dates: 2026 contribution limits ($24,500, $8,000 catch-up at 50+, $11,250 at ages 60-63) from IRS news release IR-2025-111 of 13/11/2025 and Notice 2025-67, effective 01/01/2026 (checked on 14/10/2026).

Frequently Asked Questions

What is the 401(k) contribution limit for 2026?

$24,500 of employee deferrals, plus an $8,000 catch-up from age 50, for $32,500 (IRS, IR-2025-111). At ages 60 to 63 the catch-up rises to $11,250, which the tool does not apply. Employer match comes on top of these amounts.

Should I contribute at least enough to get the full employer match?

The tool shows why: with the defaults (50% match up to 6%), deferring 6% instead of 4% lifts the balance at 65 from $1,126,314 to $1,556,014, because every percentage point between 4% and 6% triggers match. Above 6%, extra deferrals earn no further match.

What does the balance "in today's dollars" mean?

It is the final balance divided by (1 + inflation) raised to the number of years. With 2.5% inflation over 35 years the factor is 2.37, so $1,842,480 in the future buys roughly what $776,368 buys today.

How does the tool work out retirement income?

It applies the chosen annual withdrawal rate (4% by default) to the final balance and divides by 12. It does not deduct federal income tax on traditional 401(k) withdrawals or model the balance running down; the 4% rule is a convention from historical studies, not a guarantee.

Is this tool really free?

Yes, all tools on Kristools are 100% free and accessible without registration.

Is my data protected?

Yes. All processing is performed directly and securely inside your browser. No personal data is sent to our servers.