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Formula
Each year: D = min(S × p, L + C(age)); E = m × min(D, S × u) + S × n; each month: B = B × (1 + R)^(1/12) + (D + E) ÷ 12
- D
- your elective deferral for the year, capped at the IRS limit
- S
- your salary that year (raised each year by the annual raise)
- p
- your contribution rate as a share of pay
- L
- the elective deferral limit ($24,500 for 2026)
- C(age)
- the catch-up allowed at that age ($0 under 50, $8,000 from 50, $11,250 at 60–63 for 2026)
- E
- employer money for the year (match plus any non-elective contribution)
- m, u, n
- the match rate, the share of pay it applies to, and the non-elective rate
- R
- the expected annual return; B is the account balance
What a 403(b) plan is
A 403(b) is a workplace retirement plan for employees of public schools, 501(c)(3) tax-exempt organizations such as hospitals, universities and charities, and churches. It is sometimes called a tax-sheltered annuity, because the earliest plans could only hold annuity contracts. Today, money in a 403(b) can sit in annuity contracts from an insurance company, in custodial accounts invested in mutual funds or, for church employees, in retirement income accounts.
You choose a percentage of each paycheck to defer. Traditional (pre-tax) deferrals and their earnings are not taxed until you withdraw them, and many plans also offer a Roth 403(b), where you pay tax now and qualified withdrawals are tax-free. Many employers add a match or a fixed contribution of their own, and this 403(b) calculator models both.
How to use the 403(b) calculator
- Enter your current age, the age you plan to retire, and your annual salary. Add an expected yearly raise if you have one.
- Enter the percentage of pay you contribute. The calculator applies the IRS limit for each year of your age, so you can enter a high percentage and see where it gets capped.
- Describe your employer’s contribution. For a match, enter the match rate (for example 50 for 50 cents per dollar) and the share of pay it applies to. For a fixed contribution that does not depend on yours, use the non-elective field.
- Add your current balance and an expected average return after fund fees.
- Check the limit fields. They are prefilled with 2026 IRS figures; change them if you are modeling a different year or if you qualify for the 15-year service catch-up.
The result shows your estimated balance at retirement, how much came from you, from your employer and from investment growth, and a year-by-year table. Any year where your chosen percentage was more than the limit allows is marked “(capped)”.
2026 403(b) contribution limits by age
| Your age during 2026 | Elective deferral limit | Catch-up | Most you can defer |
|---|---|---|---|
| Under 50 | $24,500 | $0 | $24,500 |
| 50 to 59, or 64 and older | $24,500 | $8,000 | $32,500 |
| 60, 61, 62 or 63 | $24,500 | $11,250 | $35,750 |
Your deferrals and your employer’s money together cannot exceed $72,000 (the annual additions limit) or 100% of your includible compensation, with catch-up contributions allowed on top. Starting in 2026, if your prior-year wages from the employer were above $150,000, catch-up contributions must be made as Roth contributions.
The 15-year service catch-up
403(b) plans have a catch-up that 401(k) plans do not. If you have worked at least 15 years for a qualifying public school, hospital, health and welfare service agency or church, you may be able to defer up to $3,000 more a year, with a $15,000 lifetime cap. When you qualify for both, amounts above the regular limit count toward the 15-year catch-up first and the age-50 catch-up second. Your plan has to allow it, so ask your benefits office before relying on it.
How to calculate 403(b) growth by hand
A quick estimate uses the future value of a series of yearly contributions. Suppose you earn $45,000, defer 8% ($3,600), and your employer matches 100% of the first 3% of pay ($1,350). That is $4,950 a year. You already have $20,000 saved and expect 7% a year for 20 years.
- Contributions: $4,950 × ((1.07)^20 − 1) ÷ 0.07 = $4,950 × 40.9955 ≈ $202,928
- Starting balance: $20,000 × (1.07)^20 = $20,000 × 3.8697 ≈ $77,394
- Total: about $280,321
This shortcut assumes one deposit at the end of each year and a flat salary. The 403(b) calculator adds contributions every month, raises pay each year and applies the limit for each age, so its answer will be a little higher.
How much a 403(b) can grow over time
This table uses the 403b calculator above with a $55,000 salary rising 3% a year, a 50% match on the first 6% of pay, no starting balance and a 6% average return, retiring at 67.
| Starting age | 4% of pay | 6% of pay | 10% of pay | 15% of pay |
|---|---|---|---|---|
| 25 | $914,831 | $1,372,246 | $1,982,133 | $2,744,492 |
| 35 | $438,222 | $657,333 | $949,481 | $1,314,666 |
| 45 | $190,669 | $286,003 | $413,115 | $572,006 |
Two patterns stand out. Starting ten years earlier roughly doubles the result, and every point you add up to 6% brings another half point from the employer, so deferring 6% puts 9% of pay into the account. Above 6% the match stops growing, which is why 15% of pay gives exactly twice the 6% result rather than two and a half times. These are projections, not guarantees.
Annuities, mutual funds and fees
Because many 403(b) plans still offer annuity products alongside mutual funds, fees can vary widely between plans and even between options in the same plan. Variable annuities may carry insurance charges and surrender penalties on top of fund expenses. Enter a return that is already reduced by your total annual costs; the gap between a 1% fee and a 0.1% fee compounds into a noticeably smaller balance over 30 years.
Common mistakes
- Contributing below the match. If your employer matches up to 6% and you defer 4%, you give up part of your pay package every year.
- Forgetting catch-up turns on at 50. The limit rises in the year you turn 50, not on your birthday, and again for the years you turn 60 to 63.
- Using an optimistic return. Try your expected return and a lower one to see a range rather than a single number.
- Ignoring vesting. Employer contributions may not be fully yours until you have worked a set number of years.
For broader planning across all your accounts, the retirement calculator shows whether total savings meet a goal, and the retirement withdrawal calculator estimates how long a balance lasts once you start drawing it down. Federal employees and service members can use the TSP calculator instead.
Worked examples
A teacher with a 50% match
Age 30, $52,000 salary rising 2.5% a year, 7% of pay deferred, employer adds 50 cents per dollar on the first 6% of pay, $12,000 already saved, 6% average return, retiring at 65.
Inputs: Current age = 30 years; Retirement age = 65 years; Annual salary = $52000; Expected annual raise = 2.5 %; Your contribution = 7 % of pay; Employer match = 50 % of your contribution; Match applies up to = 6 % of pay; Employer non-elective contribution = 0 % of pay; Current balance = $12000; Expected annual return = 6 %; Catch-up contributions from age 50 = Yes, allow catch-up when my % exceeds the limit; Elective deferral limit (402(g)) = $24500; Age 50+ catch-up limit = $8000; Age 60–63 catch-up limit = $11250; Annual additions limit (415(c)) = $72000
Year 1 deferral: min($52,000.00 × 7%, limit at age 30 $24,500.00) = $3,640.00 Employer match: 50% × min($3,640.00, $52,000.00 × 6%) = $1,560.00 Monthly growth rate: (1 + 6%)^(1/12) − 1 = 0.4868% Each month: balance × (1 + monthly rate) + (your + employer contributions) ÷ 12, repeated for 420 months
Answer: Contributing 7% of a $52,000.00 salary from age 30 to 65 at a 6% return, the 403(b) grows to an estimated $903,054.01 (you $199,938.68, employer $85,688.00, growth $605,427.33).
A hospital worker with a non-elective contribution
Age 45, $78,000 salary rising 2% a year, 5% deferred, no match but a 3% employer non-elective contribution, $60,000 balance, 5% return, retiring at 62.
Inputs: Current age = 45 years; Retirement age = 62 years; Annual salary = $78000; Expected annual raise = 2 %; Your contribution = 5 % of pay; Employer non-elective contribution = 3 % of pay; Current balance = $60000; Expected annual return = 5 %; Catch-up contributions from age 50 = Yes, allow catch-up when my % exceeds the limit; Elective deferral limit (402(g)) = $24500; Age 50+ catch-up limit = $8000; Age 60–63 catch-up limit = $11250; Annual additions limit (415(c)) = $72000
Year 1 deferral: min($78,000.00 × 5%, limit at age 45 $24,500.00) = $3,900.00 Non-elective: $78,000.00 × 3% = $2,340.00 Monthly growth rate: (1 + 5%)^(1/12) − 1 = 0.4074% Each month: balance × (1 + monthly rate) + (your + employer contributions) ÷ 12, repeated for 204 months
Answer: Contributing 5% of a $78,000.00 salary from age 45 to 62 at a 5% return, the 403(b) grows to an estimated $327,224.05 (you $78,047.08, employer $46,828.25, growth $142,348.73).
Edge case: deferral above the IRS limit with catch-up
Age 58, $180,000 salary, asking for 20% ($36,000) a year: capped at $32,500 at ages 58–59 and $35,750 at ages 60–63. Dollar-for-dollar match on 4% of pay, $400,000 balance, 5% return, retiring at 64.
Inputs: Current age = 58 years; Retirement age = 64 years; Annual salary = $180000; Expected annual raise = 0 %; Your contribution = 20 % of pay; Employer match = 100 % of your contribution; Match applies up to = 4 % of pay; Employer non-elective contribution = 0 % of pay; Current balance = $400000; Expected annual return = 5 %; Catch-up contributions from age 50 = Yes, allow catch-up when my % exceeds the limit; Elective deferral limit (402(g)) = $24500; Age 50+ catch-up limit = $8000; Age 60–63 catch-up limit = $11250; Annual additions limit (415(c)) = $72000
Year 1 deferral: min($180,000.00 × 20%, limit at age 58 $32,500.00) = $32,500.00 Employer match: 100% × min($32,500.00, $180,000.00 × 4%) = $7,200.00 Monthly growth rate: (1 + 5%)^(1/12) − 1 = 0.4074% Each month: balance × (1 + monthly rate) + (your + employer contributions) ÷ 12, repeated for 72 months
Answer: Contributing 20% of a $180,000.00 salary from age 58 to 64 at a 5% return, the 403(b) grows to an estimated $826,534.10 (you $208,000.00, employer $43,200.00, growth $175,334.10).
Assumptions and limitations
- Results are estimates for planning, not financial, tax or investment advice. Real returns vary from year to year and can be negative.
- Contributions are paid in 12 equal end-of-month amounts, and the balance grows monthly at the rate equivalent to your annual return compounded once a year.
- Your age goes up by one each year, starting at the current age you enter. Catch-up starts in the year you are 50, the higher catch-up applies at 60 to 63, and the regular catch-up applies again from 64.
- IRS limits are held at the values you enter (2026 figures by default) for every year. In reality the IRS usually raises them for inflation, so long projections may understate what you are allowed to save.
- The employer match is calculated on your capped deferral. Employer money is reduced if your regular deferral plus employer money would exceed the annual additions limit; catch-up dollars do not count toward that limit.
- The 15-year service catch-up, vesting schedules, fees not already reflected in your return, taxes, loans, withdrawals and inflation are not modeled.
Frequently asked questions
How much will my 403(b) be worth when I retire?
It depends on how many years you have left, how much you and your employer put in, and the return you earn. Enter those figures above to see an estimate and a year-by-year table. Small changes matter over decades, so try a lower return as well as your expected one to see a cautious range.
What is the 403(b) contribution limit for 2026?
The IRS set the 2026 elective deferral limit at $24,500. Employees age 50 or older can add an $8,000 catch-up, for $32,500 in total, and those who turn 60, 61, 62 or 63 during the year can add $11,250 instead, for $35,750. Employer contributions are on top, within a $72,000 annual additions limit.
Does the 403(b) calculator include the employer match?
Yes. Enter the match as a percentage of your contribution and the share of pay it applies to, such as 50% on the first 6% of pay. You can also enter a non-elective employer contribution, which some schools and nonprofits pay whether or not you contribute.
How much should I contribute to my 403(b)?
A common first step is to contribute at least enough to receive the full employer match, because unmatched pay is money left on the table. Beyond that, the right rate depends on your budget, other savings and retirement goals. The calculator shows how each extra percentage point changes your projected balance.
What is the 15-year service catch-up?
Employees with at least 15 years of service at a qualifying public school, hospital, health and welfare agency or church may be able to defer up to $3,000 more a year, with a $15,000 lifetime cap. Not every plan offers it. To include it here, raise the elective deferral limit by the extra amount you are eligible for.
Is a 403(b) the same as a 401(k)?
They share the same contribution limits and work in a similar way, but a 403(b) is offered by public schools, 501(c)(3) nonprofits and churches, while a 401(k) is offered by for-profit employers. A 403(b) can also hold annuity contracts from insurance companies, not only mutual funds.
How do I calculate 403(b) growth by hand?
Add your yearly contribution and your employer's, then apply the future value of a series, contribution × ((1 + r)^n − 1) ÷ r, and add the starting balance × (1 + r)^n. This assumes deposits at the end of each year, so it comes out slightly lower than the calculator, which adds money monthly.
Sources
- 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 (IR-2025-111) — Internal Revenue Service. Checked October 10, 2026.
- Retirement topics — 403(b) contribution limits — Internal Revenue Service. Checked October 10, 2026.
- Retirement topics — Catch-up contributions — Internal Revenue Service. Checked October 10, 2026.
- Retirement plans FAQs regarding 403(b) tax-sheltered annuity plans — Internal Revenue Service. Checked October 10, 2026.