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.
50% means 50 cents per dollar you contribute
Employer matches up to this % of your salary
Annual Employer Match
$2,400
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
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%.
- 01Your contribution = $80,000 x 6% = $4,800/year
- 02Employer match = $4,800 x 50% = $2,400/year
- 03Total annual = $4,800 + $2,400 = $7,200
- 04Match future value = $2,400/yr at 7% for 20 years = ~$98,400
Frequently Asked Questions
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