Phase 2 · Wealth & Leverage
401(k) Match Calculator
An employer match is the only guaranteed return in investing. Dial in your salary, contribution and your plan's formula to see the free money you capture, what you miss, and what it grows into.
How do you calculate your 401(k) employer match?
Take the smaller of your contribution rate and your plan's match limit, then apply the match rate: employer match = salary × min(your %, limit %) × match rate. On a '50% up to 6%' plan, a $90,000 salary contributing 6% or more earns $2,700 a year. A '100% of the first 6%' plan would add $5,400 instead.
- Money forfeited = salary × max(0, match limit % − your %) × match rate. Contribute under the limit and you lose that amount every single year.
- The match is an immediate, guaranteed return: a 50% match is an instant 50% gain on matched dollars before the market moves at all.
- What the match becomes by retirement = annual match × ((1 + r)n − 1) ÷ r, the standard annuity growth factor for r return over n years.
- Vesting schedules and annual IRS contribution limits still apply — confirm your own plan's rules before relying on the figure.
Balance at retirement
Under the hood
The math, fully exposed
The match applies only up to the plan's limit; everything compounds as an annuity:
Matched % = min(your contribution %, match limit %)
Employer match = salary × matched % × match rate
Left on table = salary × max(0, limit % − your %) × match rate
Growth factor = ((1 + r)n − 1) ÷ r
Match at retirement = employer match × growth factor
- The match is an instant return: a 50% match is a guaranteed 50% gain the moment you contribute — before the market moves at all. Nothing else in investing offers that.
- Under-contributing is a silent pay cut: contribute below the limit and you forfeit match every single year, then forfeit decades of compounding on top of it.
- Capture it first: the full match outranks almost every other dollar — extra debt payoff, taxable investing, even an IRA — because the return is immediate and certain.
Your directives
What to do next, based on your numbers
Adjust the sliders to generate tailored recommendations.
Answers
Frequently asked questions
How does a 401(k) employer match work?
Your employer adds money to your 401(k) based on what you contribute, up to a cap. A common formula is "100% of the first 6%": contribute 6% of your salary and the employer adds another 6%. A "50% up to 6%" plan adds 3%. The match only applies up to the limit — contribute less than the cap and you forfeit the rest. It is part of your compensation, so not capturing it is a voluntary pay cut.
Why is the match called "free money"?
Because it is an immediate, guaranteed return on your contribution before the market does anything. A 50% match is an instant 50% gain; a 100% match doubles your money on day one. No investment reliably beats that. Capturing the full match is almost always the highest-priority move in personal finance — ahead of extra debt payoff or taxable investing.
What does "leaving money on the table" mean here?
If you contribute less than the percentage your employer is willing to match, you miss the match on that gap — every year. This tool shows that missed annual amount and, more importantly, what it would have compounded into by retirement. The lost figure is usually far larger than people expect because of decades of compounding on top.
Should I contribute more than the match?
Capturing the full match comes first — it is the best deal available. Beyond that, contributing more is still powerful tax-advantaged compounding, but it competes with paying off high-interest debt, building an emergency fund, or a Roth IRA. This is an educational model; vesting schedules, contribution limits and your full picture matter, so confirm specifics with your plan and a professional.