What the match becomes.
Your contribution, your employer’s match, and the growth on both, projected to the year you stop working.
2026 elective deferral limit $24,500, with an $8,000 catch-up contribution from age 50.
| Your annual contribution | $6,800 |
| Employer match | $2,550 |
| Total saved each year | $9,350 |
| Contributed over term | $233,750 |
| Investment growth | $610,075 |
| Balance at retirement | $888,825 |
Assumes a constant return and salary, no loans or withdrawals, and contributions spread evenly through the year. Real returns are never constant.
The match is the only guaranteed return you get
A 401(k) does three things at once: it defers income tax on the money you contribute, it compounds returns untaxed until withdrawal, and — if your employer matches — it pays you an immediate return on your own saving. A common formula of fifty cents per dollar on the first 6% of pay is an instant 50% return on that slice of salary. No investment available to you competes with it, which is why contributing below the match cap is the single most expensive mistake in retirement saving.
For 2026 you may defer $24,500 of your own salary, rising to $32,500 from age 50 with the catch-up contribution. Employer money sits outside that cap, so a well-matched employee can see far more than the limit land in the account each year. Vesting is the fine print worth checking: matched money often belongs to you only after a set number of years.
Time matters more than rate. Contributions made in your twenties are compounded for four decades; the same dollars at fifty-five have less than a decade to work. Raising your contribution by one or two points of salary now, and again with each raise, generally moves the ending balance more than chasing a slightly better fund.
Traditional contributions reduce this year’s taxable income and are taxed on withdrawal; Roth contributions are taxed now and withdrawn tax-free. If you expect to retire in a higher bracket than you occupy today, the Roth side of the plan deserves a serious look.
Common questions
How much should I contribute?
At minimum enough to collect the full employer match. A common target is 15% of pay including the match, adjusted for when you started and when you want to stop.
Does the employer match count toward the $24,500 limit?
No. The elective deferral limit applies to your own contributions; the match falls under a separate, much higher total contribution cap.
What return should I assume?
Long-run diversified equity returns have averaged roughly 7% after inflation, but with wide variation. Running the projection at 5% and 9% shows you the range you are actually planning within.
Sources & method
Employee contributions are capped at the 2026 elective deferral limit of $24,500 ($32,500 from age 50). Employer match does not count toward that limit.
The match is applied to the lesser of your contribution rate and the employer’s cap, at the match rate you enter.
Growth is compounded monthly at the return entered, applied to both your contributions and the match.
The Index
Every calculator is built the same way: real 2026 figures, method printed at the foot of the page.