401K Paycheck Calculator
Free 401K paycheck comparison calculator. See exactly how 401K contributions affect your take-home pay. Compare your paycheck before and after 401K deductions.
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How 401K Contributions Affect Your Paycheck
The most common reason people under-contribute to their 401K is overestimating the paycheck impact. A $75,000 salary with 6% contribution deducts $173 per biweekly paycheck. But because traditional 401K contributions are pre-tax, your taxable income drops, saving approximately $47 in federal tax and $9 in state tax per paycheck. Your actual take-home reduction is only $117, not $173. You invest $173, your employer adds $87 in matching, but your paycheck only shrinks by $117. That is a 222% return on the money you "gave up."
This is why financial advisors call the employer match "free money." If your employer matches 50% of contributions up to 6% of salary, not contributing at least 6% means leaving $2,250/year on the table. Over a 30-year career at 7% annual returns, that unclaimed match grows to approximately $213,000 in lost retirement wealth. Use our 401K Growth Calculator to see the long-term projection.
Traditional vs Roth 401K: Paycheck Impact
Traditional 401K contributions reduce your current taxable income, resulting in immediate tax savings that minimize the paycheck impact. Roth 401K contributions are made with after-tax dollars, meaning your paycheck takes the full hit, but withdrawals in retirement are completely tax-free. The right choice depends on your current vs expected future tax bracket. If you are in the 22% bracket now but expect to be in the 12% bracket in retirement, traditional saves more. If you are early in your career and expect higher future earnings, Roth provides decades of tax-free growth. Many financial planners recommend a split: contribute enough traditional to get the full employer match, then add Roth contributions above that amount.