401k & Retirement Calculator

Project your 401k retirement balance with employer matching, compound growth, and safe withdrawal rate. Find your retirement income using the 4% rule — updated 2026.

💰

401(k) & Retirement Calculator

Project your nest egg with employer matching

yrs
yrs
$
$
%
%
%
Projected Balance at Retirement
Total Contributions
Investment Growth
Inflation-Adjusted
Monthly Income (4% rule)

401k Retirement Calculator: How to Project Your Nest Egg

This 401k retirement calculator projects your balance at retirement using compound growth, employer matching contributions, and inflation adjustment — then shows your estimated monthly retirement income using the 4% safe withdrawal rate from the Trinity Study. Contributing $500/month starting at age 30 with a 3% employer match and 7% return produces roughly $1.1 million by age 65. That nest egg, at a 4% withdrawal rate, generates approximately $3,667/month in retirement income — a dramatic illustration of why starting early and capturing the full employer match are the two most impactful retirement decisions most Americans make.

The inflation adjustment matters more than most savers realize. A $1 million nominal portfolio in 2055 is worth significantly less in today's purchasing power. At 2.5% average inflation, your $1 million in 30 years represents roughly $480,000 in today's dollars. This calculator shows both the nominal projected balance and the inflation-adjusted (real) value so you can plan with realistic income expectations. The 4% rule — withdraw 4% annually — was validated by the Trinity Study to sustain a balanced portfolio over 30-year retirements in over 95% of historical US market scenarios.

🏦

2026 401(k) Limits

Employee contribution limit: $23,500 in 2026 ($31,000 if age 50+). Combined employer + employee limit: $70,000. Always contribute at least enough to capture your full employer match — it's an immediate 50%–100% return on those dollars.

📊

The 4% Safe Withdrawal Rate

Withdraw 4% of your portfolio in year one of retirement, then adjust for inflation annually. A $1M portfolio provides $40,000/year ($3,333/month) — a rate historically sustainable for 30+ years across most US market scenarios.

💱

Employer Match Is Free Money

A 100% match on 3% of salary means 3% of your income in free contributions. At a $75,000 salary, that's $2,250/year the employer adds. Not capturing the full match is one of the most costly financial mistakes US workers make.

☀️

Roth vs Traditional 401(k)

Traditional 401(k) reduces taxable income now; Roth 401(k) provides tax-free withdrawals in retirement. Most financial advisors recommend Roth for workers who expect to be in the same or higher tax bracket at retirement.

Frequently Asked Questions

2026 IRS limits (Notice 2025-67): Employee deferral = $24,500. Age 50+ catch-up = $8,000 additional (total $32,500). Ages 60--63 super catch-up = $11,250 instead (total $35,750 — the most generous Congress has ever offered). IRA limit = $7,500. Total employee + employer cap = $72,000. New 2026 rule: catch-ups must be Roth if prior-year FICA wages exceed $150,000.
Fidelity benchmarks: 1x salary by 30, 3x by 40, 6x by 50, 8x by 60, 10x by 67. Vanguard's 2024 report shows median 401(k) balance for ages 55-64 is approximately $185,000 — far below the 6x benchmark. Closing this gap requires aggressive savings in the 50--63 age window using catch-up contributions, which are specifically designed for this purpose.
The 4% rule (Bengen, 1994): withdraw 4% of your portfolio in year 1, then adjust for inflation annually. A $1M portfolio = $40,000/year or $3,333/month. Morningstar's 2024 research suggests 3.3%--3.8% is more conservative given current valuations and longer retirement periods. Many retirees use a flexible approach: reduce withdrawals in down market years.
Starting January 1, 2026, under SECURE 2.0 Act: employees who earned over $150,000 in FICA wages in 2025 must make age 50+ catch-up contributions to employer plans (401k, 403b, etc.) as Roth (after-tax) contributions — not pre-tax. This affects higher earners but does not change the catch-up amount limits ($8,000 or $11,250 for ages 60-63).
Traditional 401(k): Pre-tax contributions reduce 2026 taxable income now. Best if you are in a higher bracket today than you will be in retirement (typically 32%--37% brackets). Roth 401(k): After-tax contributions grow tax-free. Best if you expect higher income in retirement or if you are young (decades of tax-free compounding). Most advisors recommend Roth for workers under 40 and in the 22% bracket or below.

Related Calculators