401(k) Contribution Calculator

On an $85,000 salary at 6%, you contribute $85,000 × 6% = $5,100 per year to your 401(k). A typical employer match (50% of the first 6%) adds $2,550, bringing your total annual savings to $7,650. Because Traditional contributions are pre-tax, you save $1,377 in federal and state taxes, so the real cost per biweekly paycheck is only $143 instead of the full $196 deduction.

This tool is for anyone with a workplace retirement plan who wants to understand the immediate financial impact of their savings choices. Whether you're just starting a new job or looking to optimize your current savings, this calculator provides clarity. For a broader view of your retirement trajectory, use the main 401(k) calculator or the comprehensive retirement calculator. If you have a Roth 401(k) option, compare outcomes with the Roth 401(k) calculator.

The calculator provides a detailed breakdown of your annual savings, including your contributions, your employer's match, tax savings, and after-tax (mega-backdoor Roth) contributions. You'll see a table comparing different savings rates, charts that project your 401(k) growth with salary increases, and monthly progress tracking toward the annual contribution limit.

Start by entering your financial details in the "Income & Tax" section. Provide your annual salary, pay frequency (weekly, biweekly, semi-monthly, or monthly), your current age, federal tax filing status, and your state's income tax rate. Your age is important for determining eligibility for catch-up contributions and the SECURE 2.0 Roth catch-up wage test.

Next, in the "Your Contribution" section, enter the percentage of your salary you want to contribute. Then, select your account type: Traditional (pre-tax) or Roth (after-tax). This choice significantly impacts your tax savings now versus in retirement. For a detailed comparison, see our guide on Roth vs. Traditional IRAs, as the principles are similar for 401(k)s.

Then, configure your "Employer Match." Select the match formula your employer uses from the dropdown—this is a critical step to see how much "free money" you might be leaving on the table. Common formulas include a percentage of your contribution up to a certain limit (e.g., 50% of the first 6%) or a dollar-for-dollar match. If you are a federal employee, your plan works differently; use the TSP match calculator for specific details.

For a more detailed projection, open the "Advanced Settings." Here you can add your current 401(k) balance, expected annual return, years to retirement, and annual salary growth rate. You'll also find HSA contribution settings with 2026 limits and after-tax (mega-backdoor Roth) contribution options. Results update automatically as you change inputs.

Income & Tax Details

This section establishes the baseline for all calculations.

• Annual Salary: Your gross salary before any taxes or deductions are taken out. This is used to calculate your contribution amount and potential employer match.
• Pay Frequency: How often you are paid—weekly (52), biweekly (26), semi-monthly (24), or monthly (12). This determines your gross pay per paycheck and how contributions are spread throughout the year.
• Age: Your age at the end of 2026 (IRS catch-up eligibility is based on calendar year-end age). For 2026, savers age 50 and over can contribute an extra $8,000. Those aged 60-63 can contribute an additional "super catch-up" of $11,250. Age also affects HSA catch-up eligibility (55+) and the SECURE 2.0 Roth catch-up wage test (50+).
• Filing Status & State Tax Rate: These are used to estimate your federal and state income taxes. The calculator uses 2026 federal tax brackets and your state rate to show how pre-tax 401(k) contributions lower your taxable income. Enter 0% for states with no income tax (AK, FL, NV, NH, SD, TN, TX, WA, WY).

Your Contribution Rate & Type

This is the core of your savings strategy.

• Contribution Rate: The percentage of your gross salary you choose to save in your 401(k) each pay period. Even a 1% increase can make a huge difference over time due to compounding.
• Account Type: Choose between a Traditional 401(k) (pre-tax) or a Roth 401(k) (after-tax). Traditional contributions reduce your taxable income now, resulting in immediate tax savings. Roth contributions are made with money that has already been taxed, meaning withdrawals in retirement are tax-free. Use the Roth 401(k) calculator to model this choice in more detail.

Employer Match Formula

Your employer match is one of the best returns on investment you can get.

• Match Formula: Select the formula from the dropdown. The most common is "% of Your %," where they match a percentage (e.g., 50%) of your contributions up to a certain limit (e.g., 6% of your salary). "Dollar-for-Dollar" is a 100% match up to a limit. "Flat Amount" is a fixed contribution from your employer, regardless of what you contribute. Always contribute at least enough to get the full match.

Growth & Projections (Advanced)

These optional inputs provide a long-term view of your savings.

• Current 401(k) Balance: The total amount you already have saved in your 401(k).
• Expected Annual Return: The average annual growth rate you expect from your investments. A common long-term estimate for a diversified stock portfolio is 6-8%, but this is not guaranteed.
• Years to Retirement: The number of years you plan to continue working and contributing. This sets the timeline for your investment growth projection. The retirement age calculator can help you explore different timelines.
• Annual Salary Growth: Your expected annual salary increase (default: 2%). The calculator uses this to project rising contributions and employer match over time rather than assuming a flat salary forever. Higher salary growth means larger future contributions and match amounts.

Other Deductions (Advanced)

These inputs help create a more accurate estimate of your take-home pay.

• Other Pre-Tax Deductions: Include annual costs for things like health, dental, or vision insurance premiums that are deducted from your paycheck pre-tax.
• HSA Coverage Type: Select your Health Savings Account coverage—None, Self-Only, or Family. The 2026 HSA contribution limits are $4,400 for self-only coverage and $8,750 for family coverage, plus an additional $1,000 catch-up if you're age 55 or older.
• HSA Contribution: Enter your annual HSA contribution (capped at the 2026 limit for your coverage type). Like a Traditional 401(k), HSA contributions are pre-tax and reduce your taxable income.

After-Tax / Mega-Backdoor Roth (Advanced)

• After-Tax Contribution: Contributions beyond your pre-tax or Roth deferral, up to the 415(c) total limit of $72,000 minus your employee deferral and employer match. After-tax contributions provide no immediate tax deduction, but if your plan allows in-plan Roth conversions, you can convert them to Roth—known as the "mega-backdoor Roth." This strategy can get up to $72,000 total into tax-advantaged accounts each year.

This calculator models your paycheck and 401(k) savings on a per-pay-period and annual basis.

First, it determines your gross income per paycheck based on your annual salary and pay frequency. From there, it calculates your 401(k) contribution for each pay period based on your chosen contribution rate, capped at the 2026 IRS employee limit ($24,500, or $32,500 with catch-up, or $35,750 with super catch-up).

Next, it calculates the employer match you'd receive based on your contribution and the match formula you selected. It ensures the total of your contribution, match, and after-tax contributions does not exceed the 415(c) annual additions limit of $72,000.

The core of the calculator is the tax analysis. It calculates your estimated federal and state taxes twice: once without your 401(k) contribution and once with it. For Traditional 401(k) contributions, your taxable income is reduced, which lowers your tax bill. The difference between these two tax amounts is your "Annual Tax Savings." For Roth contributions, there is no immediate tax deduction, so the tax savings are zero.

SECURE 2.0 Roth catch-up rule: If you are age 50 or older and earn more than $145,000, the SECURE 2.0 Act requires your catch-up contributions to be designated as Roth. The calculator automatically detects this and splits your contribution—your base deferral (up to $24,500) can remain Traditional, but the catch-up portion must be Roth. This reduces your current-year tax deduction compared to making the entire contribution pre-tax.

The long-term projection uses a year-by-year model that accounts for salary growth. Each year, your salary increases by the growth rate you specify, contributions and match are recalculated (capped at the employee limit), and the running balance compounds monthly at your expected return rate. This provides a more realistic projection than assuming flat contributions forever. After-tax contributions are included in the future value projection but do not receive a tax deduction.

The calculator uses a series of formulas to determine your paycheck impact, tax savings, and future growth. The key calculations are shown below.

Employee Contribution

This formula calculates your total annual contribution based on your salary and rate, while respecting IRS limits.

catch_up_amount = if age is 60-63 then 11,250, if age >= 50 then 8,000, else 0
employee_limit = 24,500 + catch_up_amount
annual_contribution = min(annual_salary × (contribution_rate / 100), employee_limit)

SECURE 2.0 Roth Catch-Up Split

If you're 50+ and earn over $145,000, catch-up contributions must be Roth.

roth_catchup_required = age >= 50 AND annual_salary > 145,000
catchup_amount = max(0, annual_contribution - 24,500)
traditional_portion = min(annual_contribution, 24,500)  // base stays pre-tax
roth_catchup_portion = catchup_amount  // forced Roth
tax_deduction = traditional_portion  // only base portion is deductible

Employer Match

The match calculation depends on the formula selected. Here is the logic for the most common type, "Percent of Percent."

matchable_contribution_rate = min(contribution_rate, match_up_to_percent)
annual_match = annual_salary × (matchable_contribution_rate / 100) × (match_rate / 100)

After-Tax Room

after_tax_room = max(0, 72,000 - annual_contribution - annual_match)
after_tax_contribution = min(entered_amount, after_tax_room)

Tax Savings (for Traditional 401k)

Tax savings are found by comparing your tax bill with and without the pre-tax contribution.

taxable_income_without_401k = annual_salary - standard_deduction - other_deductions - hsa_contribution
tax_bill_without_401k = calculate_federal_and_state_tax(taxable_income_without_401k)

taxable_income_with_401k = annual_salary - traditional_portion - standard_deduction - other_deductions - hsa_contribution
tax_bill_with_401k = calculate_federal_and_state_tax(taxable_income_with_401k)

annual_tax_savings = tax_bill_without_401k - tax_bill_with_401k

Note: After-tax contributions are NOT included in the tax deduction. Only the traditional (pre-tax) portion reduces taxable income.

Paycheck Impact

This shows the change in your take-home pay.

pay_periods = 52 for weekly, 26 for biweekly, 24 for semi-monthly, 12 for monthly
contribution_per_paycheck = annual_contribution / pay_periods
tax_savings_per_paycheck = annual_tax_savings / pay_periods

paycheck_reduction = contribution_per_paycheck
real_cost_per_paycheck = contribution_per_paycheck - tax_savings_per_paycheck

Future Value Projection (with Salary Growth)

The calculator uses a year-by-year model rather than a simple annuity formula, accounting for rising salary over time.

balance = current_balance
for each year from 1 to years_to_retirement:
    year_salary = annual_salary × (1 + salary_growth_rate) ^ (year - 1)
    year_contribution = min(year_salary × contribution_rate, employee_limit)
    year_match = calculate_match(year_salary, year_contribution)
    year_after_tax = after_tax_contribution
    monthly_total = (year_contribution + year_match + year_after_tax) / 12
    for each month:
        balance = balance × (1 + monthly_return_rate) + monthly_total
projected_future_value = balance

Deciding how much to contribute is a personal decision, but here are some proven strategies to guide you.

1. At Least Enough for the Full Employer Match: This is the absolute minimum you should aim for. An employer match is essentially a 50% or 100% risk-free return on your investment. For example, if your employer matches 100% of the first 5% you contribute, you should contribute at least 5% of your salary. Not doing so is like turning down a pay raise.

2. Follow the 15% Rule: Many financial experts recommend saving at least 15% of your pre-tax income for retirement. This includes your contribution and your employer's match. For example, if you contribute 9% and your employer matches 6%, you've hit the 15% target. This savings rate puts most people on a solid track for a comfortable retirement. To see how this rate impacts your overall plan, use the main retirement savings calculator.

3. Aim to Max Out: The ultimate goal for high earners or those playing catch-up is to contribute the maximum amount allowed by the IRS each year. For 2026, this is $24,500 for those under 50, $32,500 for ages 50+, or $35,750 for ages 60-63. Maxing out your 401(k) is one of the most powerful ways to build wealth, thanks to tax advantages and compound growth. See our guide on how much to save for retirement each month for more benchmarks.

4. Work Backward From Your Goal: Use a comprehensive retirement calculator to determine how much you need to retire. Once you have a target number, you can work backward to figure out the annual or monthly savings rate required to get there.

5. Use After-Tax Contributions for Mega-Backdoor Roth: If you've maxed out your pre-tax or Roth deferral and your plan allows after-tax contributions with in-plan Roth conversions, you can contribute additional money up to the $72,000 total limit. This mega-backdoor Roth strategy is especially valuable for high earners who want to maximize tax-advantaged savings.

The IRS sets annual limits on how much you can contribute to a 401(k) and other defined contribution plans. For 2026, the limits are:

• Employee Contribution Limit: You can contribute up to $24,500 of your salary. This is also known as the elective deferral limit.
• Catch-Up Contribution (Age 50+): If you turn 50 or older by the end of the calendar year, you can contribute an additional $8,000, bringing your total employee contribution limit to $32,500.
• Super Catch-Up Contribution (Ages 60-63): Thanks to the SECURE 2.0 Act, individuals who turn 60, 61, 62, or 63 by the end of the calendar year can make an even larger catch-up contribution. For 2026, this "super catch-up" is $11,250, bringing their total employee contribution limit to $35,750.
• Total Contribution Limit (415(c)): The limit for all contributions—including your own, your employer's match, after-tax contributions, and any other employer contributions—is $72,000. This is also known as the annual additions limit.
• SECURE 2.0 Roth Catch-Up Mandate: Starting in 2026, if you are age 50 or older and earned more than $145,000 in the prior year, your catch-up contributions must be designated as Roth. You cannot make catch-up contributions on a pre-tax basis. This rule does not affect your base deferral (up to $24,500), which can still be Traditional.

These limits apply to 401(k), 403(b), and the federal government's Thrift Savings Plan (TSP). Note that while 457(b) plans share the same base deferral limit, the SECURE 2.0 super catch-up contribution for ages 60-63 does not apply to 457(b) plans.

If you have a High-Deductible Health Plan (HDHP), Health Savings Account contributions are a powerful complement to your 401(k) savings:

• Self-Only Coverage: $4,400/year
• Family Coverage: $8,750/year
• Age 55+ Catch-Up: Additional $1,000/year

HSA contributions are pre-tax (like a Traditional 401(k)), reduce your taxable income, and—unlike a 401(k)—can be withdrawn tax-free for qualified medical expenses at any age. After age 65, HSA withdrawals for any purpose are taxed like a Traditional IRA (no penalty). This makes the HSA a "triple tax advantage" account.

Many employers now offer both a Traditional and a Roth 401(k) option. Understanding the difference is key to tax planning.

Traditional (Pre-tax) 401(k):

• Contributions: Made with pre-tax dollars, which reduces your current taxable income.
• Tax Impact Now: You get an immediate tax break. If you're in the 22% tax bracket, every $1,000 you contribute saves you $220 in federal taxes today.
• Withdrawals in Retirement: All withdrawals—both your contributions and their earnings—are taxed as ordinary income.
• Best For: People who believe they will be in a lower tax bracket in retirement than they are today, or those who want to maximize their tax savings now to free up cash flow.

Roth (After-tax) 401(k):

• Contributions: Made with after-tax dollars. There is no upfront tax deduction.
• Tax Impact Now: Your take-home pay will be lower compared to contributing the same amount to a Traditional 401(k).
• Withdrawals in Retirement: All qualified withdrawals—both your contributions and all their earnings—are completely tax-free.
• Best For: People who believe they will be in a higher tax bracket in retirement, or those who want tax diversification and the certainty of tax-free income later in life.

You can compare both scenarios with our dedicated Roth 401(k) calculator. Also, note that any employer match you receive is always made on a pre-tax basis, even if your contributions are to a Roth 401(k).

• Paycheck Reduction vs. Real Cost: "Paycheck Reduction" is the gross amount your take-home pay decreases. "Real Cost After Tax" is what you actually feel, because it accounts for the tax savings from your contribution. For pre-tax contributions, the real cost is always lower than the contribution amount.
• Annual Tax Savings: The total amount you save on federal and state income taxes for the year by making pre-tax contributions. This is a direct benefit of using a Traditional 401(k). If the SECURE 2.0 Roth catch-up rule applies to you, your tax savings will be lower because the catch-up portion cannot be deducted.
• Projected at Retirement: This shows the long-term power of your contributions, estimating how much your 401(k) could be worth by the time you retire. The projection accounts for your expected salary growth rate, which means future contributions and match increase over time. Check how long your savings might last with our guide on how long $1 million will last in retirement.
• Contribution Rate Comparison: This table is your decision-making tool. It shows how different savings rates impact your paycheck, tax savings, employer match, total annual savings, and 10-year projected value (with salary growth), helping you find the sweet spot.
• SECURE 2.0 Banner: If you're age 50+ with salary over $145,000, you'll see an info banner explaining that your catch-up contributions must be Roth. The calculator automatically adjusts the tax deduction to reflect only the Traditional base portion.
• Charts: The visual charts help you understand where your money is going. You can see the total value of your contributions plus the match (and after-tax, if applicable), track your progress toward the annual limit, and see a breakdown of your contribution, match, and tax savings.

If you want to boost your savings, here are actionable steps:

1. Capture the Full Employer Match: This is non-negotiable. Find out your employer's match formula and contribute at least enough to get every penny. It's the highest guaranteed return on your money.
2. Increase Your Rate by 1%: If a large increase feels daunting, commit to increasing your contribution rate by just 1%. The impact on your paycheck will be small, but the long-term effect on your retirement balance will be significant.
3. Automate Your Increases: Many 401(k) plans offer an "auto-escalation" feature that automatically increases your contribution rate by 1% each year. This puts your savings on autopilot.
4. Dedicate Raises and Bonuses: Whenever you get a pay raise or a bonus, allocate a portion or all of the increase directly to your 401(k) contribution rate. You won't miss the money since it wasn't part of your previous budget.
5. Aim to Max Out: If your budget allows, work toward contributing the annual maximum allowed by the IRS. This is the fastest way to accelerate your retirement savings. If you feel you're behind, read our guide on whether it's too late to save for retirement.

1. Not getting the full employer match. This is the most common and costly 401(k) mistake. You are turning down free money.
2. Setting it and forgetting it. Your savings rate should grow as your income grows. A 6% contribution might be great for a 25-year-old, but a 45-year-old should be saving more.
3. Cashing out when changing jobs. Never cash out your 401(k). Always roll it over to an IRA or your new employer's plan to avoid taxes and a 10% early withdrawal penalty. Use the 401(k) early withdrawal penalty calculator to see the cost.
4. Ignoring the SECURE 2.0 Roth catch-up rule. If you're 50+ and earn over $145,000, your catch-up contributions must be Roth starting in 2026. Plan ahead so the higher after-tax paycheck impact doesn't catch you off guard.
5. Ignoring high fees. Pay attention to the expense ratios of the funds in your 401(k). High fees can significantly erode your returns over time.
6. Borrowing from your 401(k). While a 401(k) loan can seem tempting, it can derail your retirement savings by taking money out of the market and potentially creating tax problems if you leave your job.

Understanding your 401(k) is the first step toward building a secure retirement. Use the calculator above to experiment with different contribution rates and see how a small change today can lead to a much larger balance tomorrow.

Once you find the right rate, explore other tools to round out your plan. See how your savings fit into your overall picture with the retirement calculator, or browse all our retirement calculators to answer specific questions about Social Security, IRAs, and more. For in-depth guides, visit our learn section.