Free Employer Match Calculator

Calculate the value of your employer 401(k) match and the cost of not contributing enough to get the full match.

USD
%
%

50% means 50 cents per dollar you contribute

%

Employer matches up to this % of your salary

years
%

Annual Employer Match

$2,400

Total Annual (You + Employer)$7,200
Employer Match FV (at Retirement)$98,389
Free Money Left on Table$0

Annual Employer Match vs Years of Employment

Employer 401(k) Match

An employer match is essentially free money added to your retirement account based on your contributions.

Common Match Formulas

  • 50% of first 6%: Employer contributes $0.50 for every $1.00 you contribute, up to 6% of salary
  • 100% of first 3%: Dollar-for-dollar match on the first 3% of salary
  • Dollar-for-dollar up to 4%: Full match on the first 4%
  • Formula

    Annual Match = Salary x min(Your%, Match Limit%) x Match Rate

    The Cardinal Rule

    Always contribute at least enough to get the FULL employer match. Not doing so is turning down free money -- an immediate 50-100% return on your contribution.

    Example Calculation

    $80,000 salary, contributing 6%, employer matches 50% up to 6%, 20 years at 7%.

    1. 01Your contribution = $80,000 x 6% = $4,800/year
    2. 02Employer match = $4,800 x 50% = $2,400/year
    3. 03Total annual = $4,800 + $2,400 = $7,200
    4. 04Match future value = $2,400/yr at 7% for 20 years = ~$98,400

    Frequently Asked Questions

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