401(k) Contribution & Employer Match Calculator
Employer match from your plan's formula (e.g. 100% of the first 3%, 50% of the next 2%), the free money you are missing, per-paycheck amounts, the pre-tax saving and the projected balance with and without the full match — 2026 IRS limits.
| Your contribution | — |
|---|---|
| Employer match | — |
| Full match requires | — |
| Free money left on the table | — |
| Total going in per year / per paycheck (26) | — |
| Pre-tax saving this year | — |
| Projected balance at retirement | — |
| …if you contributed enough for the full match | — |
| IRS limit check | — |
In short
An employer match is calculated on your contribution up to a cap: with the common formula (100% of the first 3% of salary, 50% of the next 2%), contributing 5% earns a 4% match. On an 85,000 salary that is 3,400 of free money a year; contributing only 4% earns 2,975 and leaves 425 unclaimed. The 2026 IRS employee deferral limit is 24,500 (catch-up 8,000 at 50+, 11,250 at 60–63).
Who this is for: US employees checking they collect the full employer match and projecting their balance.
How employer matching works
- Formula: the employer matches a percentage of your contribution up to a cap expressed as % of salary. "100% of the first 3%, 50% of the next 2%" means contributing 5% earns a 4% match — the most common US formula.
- Partial contribution = partial match. Contributing 3% under that formula earns 3%; the 1% from tier 2 is lost. The "left on the table" line is that gap.
- Per-paycheck matching: many plans match each pay period. If you front-load and hit the annual limit in October, you can miss the match for November–December unless the plan has a true-up.
- Vesting: employer contributions may vest over 2–6 years; leaving early forfeits the unvested part.
- Traditional vs Roth: the match is always pre-tax (traditional) in most plans even if your own contributions are Roth.
See also: UK Salary Sacrifice & Pension Tax Relief Calculator.
Assumptions
- Match = tier-1 rate × min(contribution %, tier-1 cap) + tier-2 rate × min(remaining %, tier-2 cap), all as % of salary; employee deferrals capped at the IRS limit.
- Projection: annual contributions with salary growth, compounded at the return, half-year convention.
- Tax saving = contribution × marginal rate (traditional pre-tax).
Worked example
You contribute 3,400; the match is 3% + 0.5% = 3.5% → 2,975 a year. Full match needs 5% (4,250), earning 3,400 — so 425 a year is left on the table. Pre-tax saving this year 748. Projected balance at 65: about 855,000; at 5% with the full match, about 1,026,000 — 171,000 more for 850 a year of extra contributions plus the free 425.
Frequently asked questions
How much should I contribute to my 401(k)?
At least enough to get the full employer match, then 10–15% of salary including the match if you can; the retirement calculator checks whether that reaches your target.
What is a typical employer match?
Around 3–6% of salary. 100% of the first 3% plus 50% of the next 2% (4% for a 5% contribution) and 50% up to 6% (3% for a 6% contribution) are the two most common.
Is the match counted against the IRS limit?
No — the employee limit applies to your deferrals only; employer money counts toward the separate overall limit, which is much higher.
Does a Roth 401(k) get matched?
Yes, on the same formula; the match itself goes into the pre-tax side unless the plan offers Roth matching.
What does '100% of the first 3% and 50% of the next 2%' mean?
The employer adds a dollar for each dollar you contribute up to 3% of salary, then 50 cents per dollar for the next 2% — a 4% match for a 5% contribution.
What is the 401(k) limit for 2026?
24,500 for employee deferrals, plus 8,000 catch-up at 50 and over, or 11,250 at ages 60–63 — confirmed on irs.gov on 8 October 2026.
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