Free Financial Tool
401(k) Calculator
See how your 401(k) grows with employer match, salary increases, and the 2025 IRS contribution limits. Try the max contribution button.
Projected 401(k) Balance
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Employee Contributions
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Free Money (Employer)
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Investment Growth
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Comp Boost from Match
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2025 Limits Reminder
Max employee contribution: $23,500/yr · Age 50+: $31,000/yr
401(k) Growth — Employee vs. Employer vs. Growth
Year-by-Year Breakdown
| Age | Salary | Employee | Match | Growth | Balance |
|---|
How the 401(k) Calculator Works
Each year, your salary grows by the raise percentage. Your contributions are capped at the IRS limit. The employer match is calculated based on your contribution vs. their "match up to" threshold.
empContrib = min(salary × empPct, IRS_LIMIT)
matchEligible = min(empContrib / salary, matchUpToPct)
matchAmt = salary × matchPct × min(empContrib_pct / matchUpToPct, 1)
balance = (balance + empContrib + matchAmt) × (1 + return)
Worked Example
Age 30, salary $75,000, 6% contribution, 3% employer match on up to 6%, 7% return, 35 years:
- Year 1: $4,500 employee + $2,250 employer match = $6,750 contributed
- Effective compensation boost: 3% ($2,250 free money)
- Projected balance at 65: over $1.8M
- Total employer match over career: ~$175,000 in free money
Frequently Asked Questions
What is the 401(k) contribution limit for 2025?▾
The 2025 401(k) employee contribution limit is $23,500. If you're age 50 or older, you can make catch-up contributions for a total of $31,000. The combined employee + employer limit is $70,000 ($77,500 with catch-up).
How does employer 401(k) match work?▾
A common match is '50% on up to 6% of salary' — meaning if you contribute 6%, your employer adds 3% for free. Always contribute at least enough to get the full match. It's an instant 50–100% return on that contribution.
Should I max out my 401(k)?▾
After capturing the full employer match, compare 401(k) vs Roth IRA vs taxable investing. If you're in a high tax bracket now, the traditional 401(k) pre-tax deduction is very valuable. Max it out if you can afford to without sacrificing an emergency fund.
What happens to my 401(k) if I leave my job?▾
You can roll over your 401(k) to an IRA or your new employer's 401(k) without taxes or penalties. If you cash it out before age 59½, you'll owe income taxes plus a 10% early withdrawal penalty.
What is a good 401(k) match?▾
The average employer match is about 3.5% of salary. A 50% match on up to 6% (i.e., 3% employer match) is common. Some employers offer a 100% match on up to 4–6%. Any employer match is valuable — it's part of your total compensation.
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