401(k) Employer Match Calculator

How it works

Most 401(k) matches are written in tiers: the employer matches a percentage of what you contribute, but only on a slice of your pay. "100% of the first 3% plus 50% of the next 2%" means every dollar you defer up to 3% of pay is matched dollar for dollar, and each dollar between 3% and 5% of pay is matched 50 cents.

The calculator walks through the tiers in order. In each one it takes the part of your contribution rate that falls inside the tier, multiplies it by the tier's match rate, and adds it up. That total, times your salary, is the match, reduced to the dollar cap if your plan has one.

The full match is what you would get by contributing at or above the top of the last tier that pays anything. The contribution needed for the full match is the smallest rate that gets there, and the match left unclaimed is the gap between the full match and what your current rate earns.

Formula

lower_i = width_1 + … + width_(i−1)
match % = Σ rate_i × min(max(contribution % − lower_i, 0), width_i)
match   = min(match % × salary, dollar cap)
safe harbor basic: rate 100% on the first 3%, rate 50% on the next 2%
unclaimed = full match − match

Example

Under the safe harbor basic formula, someone earning $60,000 who contributes 4% ($2,400) gets 100% of the first 3% (3% of pay) plus 50% of the next 1% (0.5% of pay): a 3.5% match, or $2,100 a year.

Contributing 5% would capture the full 4% match, $2,400. At 4% they leave $300 a year unclaimed.

Assumptions and limitations

• The match is figured on your annual salary as a whole. Plans that match each paycheck without a year-end true-up can pay less if your contributions stop early in the year because you reached the IRS limit.
• The safe harbor preset is the basic matching formula in IRC §401(k)(12)(B)(i) and Treas. Reg. §1.401(k)-3(c)(2). Your plan's formula, its definition of pay and any vesting schedule are in your summary plan description.
• The IRS limits on your own deferrals, on pay that counts for plan purposes (IRC §401(a)(17)) and on total annual additions are not applied here; see the 401(k) contribution calculator for those.
• Vesting is not modelled: a match you receive may be forfeited if you leave before it vests.
• This is an estimate for planning. It is informational and educational and is not financial, tax or legal advice.

Frequently asked questions