401k Calculator & Guide
Your contribution percentage determines how much of your paycheck goes into your 401(k). Learn how percentages translate into annual savings, employer matching and long-term retirement contributions.
It is the percentage of your eligible compensation that you elect to defer into your 401(k), subject to your plan's rules and annual IRS limits.
A 5% contribution rate means you generally defer about 5% of eligible compensation into the plan.
If your plan provides matching contributions, your employer may contribute additional money based on your deferrals and the plan's match formula.
The percentage you choose must work within the applicable annual elective-deferral limit and your plan's own restrictions.
Enter your salary and contribution percentage to see an illustrative annual, monthly and per-paycheck contribution.
Example using an $80,000 annual salary. These amounts are illustrative and do not account for taxes or employer matching.
There is no single percentage that fits every employee. Consider your plan, compensation, cash flow and retirement goals.
Review your plan's matching formula and any contribution percentage needed to receive the available match.
Choose a contribution rate that fits your current cash flow while leaving room for essential expenses and other goals.
You can consider increasing your percentage when your salary rises, expenses fall or your financial situation changes.
Review your contribution rate, employer match, plan rules and applicable IRS limits periodically.
Your employer's match is determined by the formula in your retirement plan document.
A plan might match employee deferrals dollar-for-dollar up to a specified percentage of compensation.
A plan might contribute 50 cents for each dollar you defer, up to a specified percentage of compensation.
Matching formulas, compensation definitions, eligibility and timing rules vary by plan.
Contribution percentage and annual dollar limits work together. A high percentage can reach the annual elective-deferral limit faster depending on your salary.
| 2026 Rule | Amount | What It Means |
|---|---|---|
| Employee elective deferral | $24,500 | Standard annual employee elective-deferral limit. |
| Age 50+ catch-up | $8,000 | Additional catch-up amount when permitted and applicable. |
| Age 60–63 catch-up | $11,250 | Higher catch-up limit for eligible participants in this age range. |
| Defined contribution annual additions | $72,000 | Overall annual-additions limit before applicable catch-up contributions. |
These examples show annual employee contributions before any employer match.
| Annual Salary | 5% | 10% | 15% | 20% |
|---|---|---|---|---|
| $50,000 | $2,500 | $5,000 | $7,500 | $10,000 |
| $75,000 | $3,750 | $7,500 | $11,250 | $15,000 |
| $100,000 | $5,000 | $10,000 | $15,000 | $20,000 |
| $125,000 | $6,250 | $12,500 | $18,750 | $25,000* |
| $150,000 | $7,500 | $15,000 | $22,500 | $30,000* |
*At higher salaries and contribution percentages, the annual employee contribution can exceed the standard 2026 $24,500 elective-deferral limit and therefore cannot simply be contributed at that rate for the full year under the standard limit.
Your actual payroll deduction depends on your compensation, payroll schedule and plan setup.
Annual contribution divided across 12 pay periods can provide a simple monthly estimate.
Many employees receive 26 paychecks per year. Your payroll system applies your selected percentage to eligible pay.
With weekly pay, the annual contribution is generally spread across 52 pay periods, subject to payroll and plan rules.
Continue learning about contribution limits, catch-ups and employer contributions.
Learn how additional contributions work for eligible older participants.
Learn More →Understand contribution rules and thresholds relevant to higher-income employees.
Read Guide →Common questions about choosing and calculating a contribution rate.
Calculate your contribution, compare different percentages and explore the wider 401(k) calculator and contribution guides.
Clear guides, useful calculators and practical retirement resources to help you understand your 401(k), contributions, employer matching, Roth options, rollovers and long-term savings.
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