401(k) Calculator
See how employer matching and tax advantages can significantly boost your retirement savings. Free money from your employer is one of the best returns you'll ever get.
Don't Leave Free Money on the Table!
If your employer offers matching contributions, not contributing enough to get the full match is like turning down a guaranteed 50-100% return on your money. This is the easiest money you'll ever make.
Your Details
$3,600/year ($300/month)
Your 401(k) at Retirement
$552,189
Your Contributions
$108,000
Employer Match
$54,000
Investment Growth
$390,189
Free Money from Employer Match
$54,000
That's $1,800 per year!
Tax Savings
$792/year
Pre-tax contributions lower your taxable income
The Power of Employer Matching
Employer matching adds $184,063 to your retirement!
Projected Growth
The Math Behind 401(k) Growth
Annual Contribution Calculation
Your Contribution = Salary × Contribution %
Employer Match = Salary × min(Your %, Match Limit) × Match %
Total Annual = Your Contribution + Employer Match
Example: $60,000 salary, 6% contribution, 50% match up to 6%
Your contribution: $3,600/year
Employer adds: $1,800/year
Total: $5,400/year invested!
Tax Savings Formula
Tax Savings = Contribution × Tax Bracket
Example: $3,600 contribution in 22% bracket
Tax Savings: $3,600 × 0.22 = $792/year
This means your $3,600 contribution only "costs" you $2,808 in take-home pay!
Effective Return from Employer Match
A 50% employer match = instant 50% return on your money
No investment in the world consistently offers 50-100% guaranteed returns. Get the full match!
Why Max Out Your 401(k) Match?
- ✓Instant 50-100% return — employer match is free money
- ✓Tax-deferred growth — your investments grow without annual taxes
- ✓Lower taxable income — contributions reduce what you owe in taxes today
- ✓Automatic saving — money comes out before you see it
Buffett's Advice
"If you're a young person and you're trying to decide whether to take a job that pays a little more versus one that has good retirement benefits with employer matching, take the match. That's the foundation of your wealth building."
The key is to start early and let compounding work for you. Even small increases in your contribution rate can lead to significantly more money at retirement.