💰 401k Employer Match Calculator

How 401k Employer Matching Works

An employer match is when your company contributes money to your 401k retirement account based on how much you contribute. It's essentially free money for your retirement.

Common Employer Match Formulas

• 100% match up to 6%: For every dollar you contribute (up to 6% of salary), your employer contributes $1
• 50% match up to 6%: For every dollar you contribute (up to 6% of salary), your employer contributes 50 cents
• 100% on first 3%, 50% on next 2%: Dollar-for-dollar on first 3%, then 50 cents per dollar on next 2%

Why Employer Match Matters

The employer match is an instant 50%-100% return on your investment, guaranteed. If your employer offers a match, you should always contribute at least enough to get the full match before investing elsewhere.

Example Calculation

Scenario: You earn $75,000/year. Your employer offers 100% match up to 6% of salary.

• You contribute 6% = $4,500/year
• Employer matches 100% = $4,500/year
• Total retirement savings = $9,000/year
• Free money from employer: $4,500/year!

Maximizing Your Match

Do this:

• Contribute at least enough to get full match
• Contribute early in the year (some employers match per-paycheck)
• Understand if match is immediate or has vesting schedule
• Check if bonuses count toward match calculation

Don't do this:

• Contribute less than the match limit (you're leaving free money on the table)
• Max out 401k too early (you might miss later matches if employer matches per-pay-period)
• Ignore the vesting schedule (you might lose unvested match if you leave)

Understanding Vesting

Vesting means you own the employer match. Some companies have immediate vesting (you own it right away), others use a schedule like:

• Cliff vesting: 0% until year 3, then 100%
• Graded vesting: 20% per year over 5 years

Check your plan's vesting schedule — it affects how much match you keep if you change jobs.