How Much Should I Contribute to My 401(k)?
The common guideline: contribute at least enough to get your full employer match, then build toward about 15% of your pay (including the match). On a $70,000 salary, 15% is about $10,500/year (~$875/month). Find your rate below.
Short answer: a common target is 15% of your pay each year, including your employer’s match — Fidelity’s guideline. Vanguard puts the range at 12–15%. On a $70,000 salary, 15% is $10,500 a year ($875 a month). If your employer matches 3% of pay, you only need to contribute 12% yourself — $8,400 — to reach it. Always contribute at least enough to capture the full match; anything less is leaving pay on the table.
Guidelines from Fidelity and Vanguard. Dollar figures from the calculator below.
Aim for about 15% of your pay (including employer match) — on a $70,000 salary, that’s roughly $10,500/year.
Always contribute at least enough to capture your full employer match first — it’s free money. Then step your rate up toward 15%. Check your rate ↓
2026 IRS employee 401(k) limit: $24,500 ($31,000 if 50+). The employer match doesn’t count toward that employee limit.
How you compare
Your total savings rate vs. the 12–15% guideline
How much to put in your 401(k)
Three tiers help most people decide. First, contribute at least enough to earn your full employer match — skipping it leaves guaranteed money on the table. Second, work toward a total savings rate of about 15% of pay, counting your contribution plus the match; Fidelity uses 15% and Vanguard suggests 12–15%. Third, if you can, push toward the annual IRS limit. Even one extra percentage point of pay, invested for decades, compounds into a meaningful difference at retirement.
How it’s calculated
Total rate = your contribution % + employer match % of pay. Per-year dollars = total rate × salary; per-month divides by 12. The gauge compares your total rate to the 12–15% guideline. The employer match does not count toward your personal IRS contribution limit.
A planning guideline, not advice. Your ideal rate depends on your budget, other goals, and whether you also use an IRA or HSA.
What 15% of pay actually looks like
The 15% target counts your contribution plus the employer match. The last column assumes an employer that matches 3% of pay.
| Salary | 15% target / yr | Per month | You contribute | Your share / yr |
|---|---|---|---|---|
| $40,000 | $6,000 | $500 | 12.0% | $4,800 |
| $50,000 | $7,500 | $625 | 12.0% | $6,000 |
| $60,000 | $9,000 | $750 | 12.0% | $7,200 |
| $70,000 | $10,500 | $875 | 12.0% | $8,400 |
| $85,000 | $12,750 | $1,062 | 12.0% | $10,200 |
| $100,000 | $15,000 | $1,250 | 12.0% | $12,000 |
| $150,000 | $22,500 | $1,875 | 12.0% | $18,000 |
Every figure uses the same arithmetic as the calculator above: total rate = your % + employer match %, applied to salary. The match does not count toward your personal IRS contribution limit.
Frequently asked questions
What percentage should I put in my 401(k)?
Most guidance lands at 12–15% of pay including employer match. Start by capturing your full match, then raise your own contribution about 1% per year until you reach the target.
Does the employer match count toward the limit?
No. The 2026 employee contribution limit is $24,500 ($31,000 if 50 or older). Your employer’s match is separate and does not reduce how much you can personally contribute.
How much should I contribute to my 401(k)?
A widely used target is 15% of your pay per year including your employer's match. Fidelity recommends 15%; Vanguard suggests 12-15%. On a $70,000 salary that is $10,500 a year, or $875 a month. If your employer matches 3% of pay, contributing 12% yourself reaches the target.
What percentage should I contribute to get the full match?
At minimum, contribute whatever percentage your employer matches up to. If the match is 50 cents on the dollar up to 6% of pay, you must contribute 6% to collect all of it. Contributing less forfeits part of your compensation.
Does the employer match count toward my contribution limit?
No. The employer match does not count toward your personal IRS elective-deferral limit. It does count toward the separate combined employer-plus-employee limit.
What’s the minimum I should contribute?
At least enough to get your employer’s full match. If your employer matches up to 3% of pay, contribute at least 3%.
Is 15% too much?
15% including the match is a target, not a starting point. If you can’t hit it yet, start where you can and raise your rate 1% a year — many plans automate this.
Does the match count toward the IRS limit?
No. In 2026 you can contribute up to $24,500 yourself ($31,000 if 50+); the employer match is on top of that.