Why the Employer Match Changes Everything
A typical employer match — say, 50% of your contributions up to 6% of salary — is an instant, guaranteed 50% return on your money before any market growth. No CD, bond, or stock offers that. Yet a large share of workers contribute below their match limit, leaving thousands of dollars of free compensation unclaimed every year. This calculator makes the match visible: enter your plan's terms and watch how much of your final balance came from money you never had to earn.
How the Projection Works
Each year, the calculator adds your contribution plus the employer match, then grows the whole balance by your expected return. Over 35 years, a 30-year-old earning $65,000 who contributes 6% with a 50%-up-to-6% match at a 7% return (starting from a $15,000 balance) ends near $970,000 — of which roughly $270,000 is employer match and its growth. The projection assumes steady salary and returns; real life is bumpier, but the long-run math holds.
Getting the Most From Your 401(k)
- Always capture the full match first. Before extra debt payments, before IRAs, before anything — the match is a 50–100% instant return.
- Increase contributions with raises. Bumping your rate 1% each year is painless and compounds enormously.
- Mind the return assumption. 7% is a common long-run estimate for diversified stock funds; use 5% if you want a conservative floor. For the zero-risk portion of retirement money, see our IRA CD Calculator.
What This Calculator Doesn't Include
Salary growth, contribution limit changes, vesting schedules (employer match may take years to fully own), fees, and taxes on withdrawal. It's a planning estimate — pair it with our Compound Interest Calculator to model other savings alongside it.