401(k) Calculator 2025
See how much goes into your 401(k), what your employer contributes, and how much you save in taxes. Enter your salary and contribution details below.
Your Effective Cost After Tax Savings
$3,510.00
$6,750.00 total going into your 401(k)
| Breakdown | Amount |
|---|---|
| Salary | $75,000.00 |
| Your Contribution | $4,500.00 |
| Employer Match | $2,250.00 |
| Total into 401(k) | $6,750.00 |
| Tax Savings | $990.00 |
| Effective Cost | $3,510.00 |
| 2025 Annual Limit | $23,500.00 |
| Remaining Limit | $19,000.00 |
How 401(k) Contributions Work
A 401(k) is an employer-sponsored retirement plan that lets you save pre-tax dollars. Your contributions reduce your taxable income, and the money grows tax-deferred until you withdraw it in retirement. Many employers offer matching contributions — typically 50% of your contribution up to 3-6% of salary.
For 2025, you can contribute up to $23,500 ($31,000 if you are 50 or older). Combined employer and employee contributions cannot exceed $70,000.
Example: $75,000 salary, 6% contribution, 50% match up to 6%
Your contribution: $4,500/year. Employer match: $2,250. Total into 401(k): $6,750. If you are in the 22% bracket, your tax savings are $990/year. The $4,500 only costs you $3,510 after the tax benefit — and your employer added $2,250 for free.
Frequently Asked Questions
What is the 401(k) contribution limit for 2025?
The employee contribution limit for 2025 is $23,500. If you are 50 or older, you can make an additional catch-up contribution of $7,500, bringing the total to $31,000.
What is a typical employer match?
A common match is 50% of your contribution up to 6% of salary. So if you earn $75,000 and contribute 6% ($4,500), your employer adds $2,250. Some employers match dollar-for-dollar.
How does a 401(k) save on taxes?
Traditional 401(k) contributions are pre-tax — they reduce your taxable income in the year you contribute. If you are in the 22% bracket, every $1,000 you contribute saves $220 in federal tax.
What is the difference between traditional and Roth 401(k)?
Traditional contributions are pre-tax (you pay tax on withdrawals in retirement). Roth contributions are after-tax (withdrawals in retirement are tax-free). This calculator covers traditional contributions.
Should I contribute enough to get the full employer match?
Almost always yes. An employer match is essentially free money. Not contributing enough to get the full match is leaving part of your compensation on the table.
Important Disclaimer
The figures provided by this calculator are estimates based on the information you enter and published rates at the time of writing. They do not constitute financial, tax, or legal advice, and we accept no liability for decisions made on the basis of these estimates. Your actual liability may differ depending on your individual circumstances, applicable reliefs, and any changes to rates or legislation. Always consult a qualified professional or check the latest IRS guidance at irs.gov before making financial decisions.
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