401(k) Contribution & Employer Match Calculator

Q: What contribution percentage captures my full 401(k) match?

It's the sum of the salary-percentage caps in your match formula — not the match rates. For a formula like '100% of the first 3% plus 50% of the next 2%', the optimal rate is 3% + 2% = 5%. Contributing 5% earns the maximum employer match; contributing more is still tax-advantaged but earns no extra match.

Q: How do I read a match formula like '100% of first 3%, 50% of next 2%'?

The first number is the match rate and the second is a salary-percentage band. '100% of first 3%' means the employer adds $1 for every $1 you contribute, up to 3% of your salary. '50% of next 2%' means 50 cents per dollar on the next 2% band. Together that maxes out at 4% of salary in employer money when you contribute 5%.

Q: What is the 2026 401(k) contribution limit?

The 2026 IRS employee elective-deferral limit is $24,500 for people under 50. Catch-up contributions add $8,000 for ages 50+, and $11,250 for ages 60–63 under SECURE 2.0. The calculator uses the under-50 limit by default; raise the limit field if you're 50 or older.

Q: Is this 401(k) calculator free?

Yes — 100% free. Everything is calculated privately in your browser; nothing is stored or sold. This is an educational estimate, not financial or tax advice.

Find the contribution % that captures your full employer match

Your pay & contribution

Annual salary (gross eligible)

Your current contribution rate

Use gross W-2 eligible pay, not take-home. Your current rate is the % you defer from each paycheck right now.

Employer match formula

Tier 1 — match rate

Tier 1 — up to this % of salary

Tier 2 — match rate

Tier 2 — up to this additional % of salary

Annual match dollar cap (optional)

Read "100% of first 3%, 50% of next 2%" as: tier 1 = 100% rate up to 3% of salary; tier 2 = 50% rate on the next 2%. Set tier 2 to 0 if single-tier. The dollar cap is rare — leave blank if your plan has none.

Projection assumptions

Current age

Planned retirement age

Current 401(k) balance

Expected annual return

Expected annual salary growth

IRS deferral limit (per year)

7% is a common long-horizon planning return (not a guarantee) — try 5–6% to stress-test. The IRS limit is the 2026 under-50 figure; raise it if you're 50+ (catch-up).

Contribute to capture your full match

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401(k) Match Calculator — guide & how to use

What it does

Your employer's 401(k) match is the closest thing to free money most people will ever be offered — but match formulas like "100% of the first 3% plus 50% of the next 2%" are hard to translate into a dollar figure or a contribution percentage. This calculator does it for you. It finds the smallest contribution rate that captures your full match, shows the annual match in dollars, and projects your balance at retirement at both your current rate and the optimal rate — so you can see, in one number, the retirement wealth you'd leave on the table by under-contributing. Everything runs privately in your browser, free.

How to read a match formula

A two-tier match has two paired numbers per tier — a match rate and a salary cap:

"100% of first 3%" → tier 1 match rate = 100, tier 1 salary cap = 3. The employer adds $1 per $1 you contribute, up to 3% of salary.
"50% of next 2%" → tier 2 match rate = 50, tier 2 cap = 2. The employer adds 50¢ per $1 on the next 2% band.

The optimal contribution rate is the sum of the salary caps (3% + 2% = 5%), not the sum of the match rates (100 + 50 ≠ anything useful). The maximum employer money equals 3%×100% + 2%×50% = 4% of salary, paid when you contribute 5%.

Worked example

Salary $75,000, current rate 3%, formula 100% of first 3% + 50% of next 2%, age 35 → 65, 7% return, 2% raises, $0 starting balance:

Optimal rate: 3% + 2% = 5% of salary.
Match at optimal: $75,000 × 3% × 100% = $2,250, plus $75,000 × 2% × 50% = $750 → $3,000/yr in employer money.
Match at your current 3%: only tier 1 fills (and only to 3%) → $75,000 × 3% × 100% = $2,250/yr. You're missing the entire tier 2.
Left on the table this year: $3,000 − $2,250 = $750/yr in match alone.
Projected at 65 (current 3%): ≈ $522,000. At optimal 5%: ≈ $783,000. The gap — about $261,000 — is the true cost of under-contributing, because the missed match and your own extra contributions compound for 30 years (with 2% annual raises lifting both each year).

(The tool runs the projection year by year, growing your salary and re-capping at the IRS limit, then rounds the displayed dollars — so figures can differ slightly from hand-rounded steps.)

How to use it

Enter your gross annual salary and your current contribution rate.
Enter your match formula as paired rate/cap fields. Set tier 2 to 0 if your plan is single-tier; add a dollar cap only if your plan has one.
Set your age, retirement age, current balance, return, raises, and the IRS limit (raise it if you're 50+).
Read the headline optimal %, the annual match in dollars, and — if you're under-contributing — what you're leaving on the table now and by retirement.

Accuracy notes & common mistakes

Optimal rate = sum of salary caps, not match rates. 3% + 2% = 5%, never 150%.
Contributing above the cap earns no extra match. It's still tax-advantaged saving, but unmatched.
Use gross eligible pay, not take-home. Net pay understates both your contribution and the match.
The IRS limit caps high earners. The 2026 employee deferral limit is $24,500 (under 50); +$8,000 catch-up at 50+, +$11,250 at ages 60–63. Raise the limit field if it applies to you.
High salaries: the 2026 IRS 401(a)(17) compensation limit ($360,000) caps the salary on which match is computed in qualified plans — match on pay above that may be lower than a raw salary×% suggests.
Projections are nominal, not inflation-adjusted; 7% is a planning convention, not a guarantee, and returns can be negative in any year.
Vesting is ignored — the figure is the gross formula match; unvested employer money is forfeited if you leave early (safe-harbor matches are immediately vested).
Cadence & true-up: the annual model assumes the full match is earned (i.e. a true-up exists). Plans that match per paycheck with no true-up can pay less if you front-load contributions.
Contributions are modeled end-of-year (a conservative simplification); real paycheck contributions through the year grow modestly more. Roth vs. traditional tax treatment is not modeled.

Frequently asked questions

What contribution percentage captures my full 401(k) match?

It's the sum of the salary-percentage caps in your formula — not the match rates. For "100% of first 3% plus 50% of next 2%", the optimal rate is 3% + 2% = 5%. Contributing 5% earns the maximum employer match; contributing more is still tax-advantaged but earns no extra match.

How do I read a match formula like "100% of first 3%, 50% of next 2%"?

The first number is the match rate, the second is a salary band. "100% of first 3%" means the employer adds $1 per $1 you contribute, up to 3% of salary. "50% of next 2%" means 50¢ per dollar on the next 2% band. Together they max out at 4% of salary in employer money when you contribute 5%.

How much is the employer match worth in dollars?

Multiply each tier's salary band by its match rate and your salary. For $75,000 with 100% of first 3% + 50% of next 2%: tier 1 = $75,000 × 3% × 100% = $2,250, tier 2 = $75,000 × 2% × 50% = $750, for $3,000/yr. This calculator does it automatically and projects it to retirement.

Does contributing above the match cap earn more match?

No. Once you hit the formula's salary cap (5% in the common example), extra contributions earn zero additional match. They're still worth making for the tax advantage and compounding, but they aren't matched.

What is the 2026 401(k) contribution limit?

The 2026 IRS employee elective-deferral limit is $24,500 (under 50). Catch-up adds $8,000 for ages 50+, and $11,250 for ages 60–63 under SECURE 2.0. The calculator defaults to the under-50 limit; raise the limit field if you're 50 or older.

Is the projected balance in today's dollars?

No — projections are nominal, not inflation-adjusted. A dollar at retirement buys less than a dollar today. Use the result to compare scenarios and capture your full match; for purchasing power, mentally discount by ~2.5–3%/yr inflation.

Is this 401(k) calculator free?

Yes — 100% free, calculated in your browser. Nothing is stored or sold.

Educational estimate only — not financial or tax advice. Match formulas, eligibility, vesting, and the definition of eligible pay vary by plan; check your Summary Plan Description (SPD). IRS limits are indexed annually — verify the current year. Source: IRS 401(k) contribution limits & Notice 2025-67 (2026 COLA amounts: $24,500 deferral, $8,000 / $11,250 catch-ups).

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