See where today's contribution rate leads by retirement, and what a bigger percentage changes.
Projected 401(k) balance
In today's dollars this is less; inflation is not subtracted.
| Starting balance | $15,000 |
|---|---|
| Your contributions | $258,079 |
| Employer match | $129,040 |
| Investment growth | $1,259,832 |
Contributions are capped at the 2026 limit of $24,500 each year; catch-up contributions aren't included.
See how contributions affect your paycheck in the paycheck calculator.
$24,500 in employee contributions. Workers 50 and older can add a $8,000 catch-up, and those aged 60 to 63 can add $11,250 instead (IRS Notice 2025-67). Employer contributions don't count toward the employee limit.
A common formula is "50% of what you contribute, up to 6% of salary." Contribute 6% and your employer adds 3%. Contributing less than the match limit leaves free money on the table.
Many planners use 5% to 7% a year for a diversified stock-heavy portfolio over decades. Returns aren't guaranteed, so try a lower rate to see a cautious case.