401(k) Employer Match Calculator
Model a tiered employer match, find the exact contribution rate that captures all of it, and see in dollars what you give up by contributing less.
Your plan
Read the match formula off your summary plan description. Most look like “100% of the first 3%, then 50% of the next 2%”.
$3,800 a year before the IRS cap.
Match formula
100% means dollar for dollar.
Set to 0 if your plan has a single tier.
Set this to the limit for your plan year. It changes annually.
26 for biweekly, 24 for semi-monthly, 12 for monthly.
Free money left on the table
$475
Contribute 5.0% of salary to capture all $3,800.
You contribute
$3,800
Per year.
Employer adds
$3,325
of a possible $3,800.
Instant return
88%
On your own contribution, before the market does anything.
Balance in 25 years
$450,649
At 7.0% a year on contributions plus match.
Raising your contribution from 4.0% to 5.0% costs you $950 a year of your own money and hands you $475 a year of your employer’s. Compounded at 7.0% for 25 years, the match you are currently skipping is worth $30,043.
Where you land in 25 years
Your current plan against the version that captures every match dollar.
$90,130 more, of which $30,043 is your employer's money.
Match dollars are subject to your plan’s vesting schedule, so they are not irreversibly yours until you have stayed long enough to vest. This projection also ignores taxes on withdrawal, which for a traditional 401(k) arrive at your ordinary income rate in retirement.
Key takeaways
- An employer match is an immediate, risk-free return on the money you contribute: a dollar-for-dollar match on the first 3% of salary is a 100% return before the market does anything.
- The contribution rate that captures a full match is the sum of the tier limits in the match formula, so a "100% of the first 3%, 50% of the next 2%" plan requires contributing 5% of salary, not 3%.
- Contributing less than the full match amount is the only common personal finance mistake with a guaranteed, quantifiable cost, and this calculator prices it.
- Plans without a true-up provision match per paycheck, so hitting the annual IRS deferral limit early in the year stops the match for the remaining paychecks even though the annual contribution was large.
- Employer match dollars are subject to a vesting schedule, so the money is only irreversibly yours once you have stayed long enough to vest.
Frequently asked questions
- What contribution percentage do I need to get my full 401(k) match?
- Add up the tier limits in your match formula. A plan matching 100% of the first 3% and 50% of the next 2% requires you to contribute 5% of salary to capture everything, because the second tier only pays on contributions between 3% and 5%. This calculator computes that number for you from whatever formula you enter.
- Is an employer 401(k) match really worth it?
- Yes, and it is the highest-certainty return available to most people. A dollar-for-dollar match is an instant 100% return on the matched portion with no market risk attached, which no investment can offer. The only reason to contribute below the match is a genuine cash-flow emergency or high-interest debt above roughly 20% APR.
- What is a 401(k) true-up and why does it matter?
- A true-up is a plan provision that reconciles your match at year end based on your total annual contribution rather than paycheck by paycheck. Without one, front-loading your contributions and hitting the IRS deferral limit in, say, August means no match at all for the remaining paychecks. If your plan lacks a true-up, spread contributions evenly across all pay periods.
- Does the employer match count against the IRS contribution limit?
- Not against the employee deferral limit, which applies only to money you defer from your own pay. Employer contributions count against a separate, much higher combined limit on total additions to the account. In practice almost nobody bumps into the combined limit, so the match is effectively free capacity on top of what you can defer yourself.
- What happens to the match if I leave before I am vested?
- You forfeit the unvested portion. Employee contributions are always 100% yours immediately, but match dollars commonly follow a cliff schedule (nothing until year three, then everything) or a graded schedule (20% a year over five years). Check your summary plan description before timing a resignation, because leaving one month short of a cliff can cost several thousand dollars.