How this 401(k) and retirement calculator works
Each year until retirement, the calculator adds your contributions, your employer's match and any IRA savings, then grows the balance at the return you choose. Your salary rises by your yearly raise, so your contributions grow too.
- Employer match – a common formula is 50% of what you contribute, up to 6% of your pay. If your employer offers a match, contributing at least enough to get all of it is one of the best returns available.
- IRS limits for 2026 – $24,500 for a 401(k), plus $8,000 in catch-up contributions from age 50 ($11,250 at ages 60 to 63). IRAs allow $7,500, plus $1,100 from age 50.
- Today's dollars – because prices rise over time, we also show your balance after adjusting for inflation, so you can compare it with what things cost today.
- The 4% rule – a common starting point for retirement income: withdraw about 4% of your savings in the first year, then adjust for inflation.
Frequently asked questions
How much should I save for retirement?
A common guideline is 10% to 15% of your pay, including any employer match. Starting early matters more than the exact percentage because of compound growth.
What return should I assume?
Many planners use 5% to 7% a year for a diversified stock-and-bond portfolio over long periods. Returns are never guaranteed, so try a lower number to see a cautious estimate.
What is the difference between a 401(k) and an IRA?
A 401(k) is offered by an employer and has higher contribution limits and often a match. An IRA is opened on your own at a bank or brokerage. Both come in traditional (pre-tax) and Roth (after-tax) versions.