401k Savings Calculator: See What Your Retirement Could Look Like

A 401(k) is a retirement account you fund through your job, usually by setting aside a percentage of each paycheck before you ever see it. With a traditional 401(k), that money goes in before taxes, which lowers your taxable income for the year, and you pay income tax later when you withdraw it in retirement. A Roth 401(k) works the other way: you contribute money you've already paid tax on, and qualified withdrawals in retirement come out tax-free.

The part that makes a 401(k) hard to beat is the employer match. Many employers add money to your account based on what you contribute, up to a limit. That match is part of your compensation, and skipping it means turning down pay you've already earned. One catch worth knowing: some employer contributions vest on a schedule, so you may need to stay a few years before that money is fully yours.

Credit.org doesn't sell investments or manage retirement accounts. What we do is help you build the budget that makes consistent contributions possible. If money is tight and you're choosing between saving and staying current on bills, a certified counselor can help you sort out the order of operations.

A few inputs do most of the work in any 401(k) projection. Understanding them helps you read your own estimate instead of just taking the final number at face value.

‍Your Contribution RateThis is the input you control most directly. Going from 4% of your pay to 6% might cost you a noticeable amount per paycheck now, but over 30 years the difference compounds into a much larger gap at retirement. A good first target is contributing at least enough to capture your full employer match.

‍The Employer MatchMatch dollars go straight into your account and start growing immediately, which makes them the highest-return money in the whole plan. If your employer matches up to 6% and you only contribute 3%, you're leaving half of that free money behind every year.

‍Time and Compound GrowthCompounding rewards the years you can't get back. A dollar invested at 30 has decades to grow on itself; the same dollar invested at 55 has far less time to work. This is why starting early, even with small amounts, usually beats waiting until you can afford to contribute more.

‍Your Rate of ReturnThe return you assume has a large effect on the projection, and it's the input you control the least. Markets rise and fall year to year. A figure in the 5% to 7% range is a reasonable long-run planning assumption for a diversified account, but it's an average, not a promise. Run a lower number too, so your plan still holds up in a weak decade.

‍Plan FeesFees rarely show up on a calculator, but they quietly reduce your balance every year. The difference between a fund charging 0.10% and one charging 1% can add up to tens of thousands of dollars over a career. Check your plan's fee disclosure and favor low-cost options where your plan offers them.

The IRS caps how much you can put into a 401(k) each year, and the limits went up for 2026. These caps apply to your own contributions. Your employer's match sits on top of them.
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- Standard limit: You can contribute up to $24,500 in 2026, up from $23,500 in 2025.
- Age 50 and older: You can add a catch-up contribution of $8,000, bringing your total to $32,500.
- Ages 60 to 63: A higher catch-up of $11,250 applies under SECURE 2.0, for a total of $35,750, if your plan offers it.

An IRA is separate, with its own $7,500 limit for 2026, so many people contribute to both. If you're nowhere near these caps, that's normal. Most people work up to higher contribution rates over time as raises come in and other expenses ease. The calculator is a good way to see what reaching a higher rate would do for your retirement balance.

Most plans let you choose between a traditional and a Roth 401(k), and some people split their contributions between the two. The right choice usually comes down to whether you'd rather take the tax break now or in retirement.

‍Traditional 401(k)Your contributions come out of your paycheck before taxes, so they lower your taxable income this year. The account grows tax-deferred, and you pay ordinary income tax on withdrawals in retirement. This tends to appeal to people who expect to be in a lower tax bracket once they stop working.

‍Roth 401(k)You contribute after-tax dollars, so there's no break today, but qualified withdrawals in retirement are tax-free, growth included. This often makes sense for younger savers and anyone who expects their tax rate to be higher later. Thanks to a SECURE 2.0 change, Roth 401(k)s no longer require minimum distributions during your lifetime starting in 2024, which gives the money more room to keep growing.

A 401(k) is one of the strongest retirement tools most workers have access to, but it comes with rules and trade-offs worth knowing before you decide how much to lean on it.

If you're weighing how hard to push your contributions against other goals like paying down high-interest debt, a Credit.org counselor can help you find a balance that fits your actual budget.

How much should I contribute to my 401(k)?
‍Start by contributing at least enough to get your full employer match, since that's money you'd otherwise give up. From there, a common goal is putting away 10% to 15% of your income toward retirement, including the match. If that feels out of reach right now, contribute what you can and raise it a percent or two whenever you get a raise.

‍How does an employer match work?
‍Your employer adds money to your account based on what you contribute, up to a set limit. A typical formula is 50% of your contributions up to 6% of your pay. So if you earn $50,000 and contribute 6%, the employer adds 3% of your salary, or $1,500, on top of your own $3,000. Plug your own match into the calculator to see how much it adds over time.

‍How much can I contribute in 2026?
‍You can contribute up to $24,500 if you're under 50. If you're 50 or older, you can add an $8,000 catch-up for a total of $32,500. Savers ages 60 to 63 can contribute up to $35,750 if their plan allows the higher catch-up. These limits cover your contributions only, not your employer's match.

‍What happens if I withdraw money early?
‍In most cases, taking money out before age 59½ means paying a 10% early-withdrawal penalty plus income tax on the amount. There are exceptions for certain hardships, disability, and a few other situations, but the penalty makes early withdrawals an expensive way to raise cash. If you're considering one to cover debt or an emergency, it's worth talking through other options first.

‍Should I choose a traditional or Roth 401(k)?
‍It depends on when you'd rather pay the tax. A traditional 401(k) gives you the break now and taxes withdrawals later, which suits people who expect a lower tax bracket in retirement. A Roth gives no break today but tax-free withdrawals later, which often favors younger savers and anyone expecting higher taxes down the road. Some people hedge by splitting contributions between both.

‍What rate of return should I use in the calculator?
‍A long-run figure in the 5% to 7% range is a reasonable planning assumption for a diversified account, but it's an average across good and bad years, not a guarantee. Run the calculator with a more conservative number too. If your plan still looks healthy at 5%, you've built in some cushion.

‍What happens to my 401(k) when I change jobs?
‍You generally have four options: leave the money in your old plan, roll it into your new employer's plan, roll it into an IRA, or cash it out. Cashing out before 59½ usually means taxes and a penalty, so the first three keep more of your savings working. Rolling old accounts together also makes them easier to track.

‍When do I have to start withdrawing?
‍Traditional 401(k)s require minimum distributions starting at age 73, an age that rises to 75 in 2033 under current law. Roth 401(k)s no longer require lifetime distributions as of 2024, so that money can keep growing as long as you leave it alone.

‍Should I pause my 401(k) to pay off debt?
‍It's rarely all or nothing. A reasonable middle path is to keep contributing at least enough to get your full employer match, then put extra money toward high-interest debt like credit cards. Giving up the match usually costs more than the interest you'd save. A Credit.org counselor can review both sides of your situation and help you decide where each dollar does the most good.

A projection from the 401k savings calculator tells you where you're headed. A conversation is how you change direction if you don't like what you see. Credit.org's certified counselors are nonprofit, unbiased, and focused on your whole financial picture rather than one account. We've been doing this since 1974.