401(k) Match Calculator
The 401(k) Match Calculator shows the annual and monthly value of your contributions plus the employer match, and how much free money you leave on the table if you contribute below the match threshold.
What this means
Many employers match part of what you contribute, typically up to a percent of your salary. Matching contributions are free money — investing at least enough to capture the full match is usually the best first step in investing.
How we calculate it
Formula
Match = min(your contribution, salary × match cap) × employer match %; total = your contribution + match.Worked example
$80,000 salary, contributing 6%, with a 50% match up to 6%:
- 1Your contribution = 6% × $80,000 = $4,800
- 2Match = 50% × $4,800 = $2,400
- 3Total = $4,800 + $2,400 = $7,200
Important assumptions
- Contributions stay under the annual IRS limit.
- The match formula stays the same all year.
Frequently asked questions
Should I always max out the match?
Almost always yes — the match is an instant, risk-free return on your money. It beats nearly every other investment choice.
What if I can't afford to contribute much?
Contribute at least enough to capture the full match first, even if it requires trimming other spending. Free money today compounds into a much larger balance later.