How Employer Matching Works
A common employer match is "50% up to 6%". This means if you contribute 6% of your salary, your employer adds another 3% (50% of 6%). Contributing more than the match limit usually doesn't get you extra free money from the employer.
Key Calculations
Annual Employee Contribution = Salary × Your Contribution %
Annual Employer Match = min(Your Contribution, Match Limit) × Match Rate
Future Value uses compound growth on current balance + growing contributions each year.
Important Notes
- This calculator assumes tax-deferred growth (traditional 401k).
- It does not account for investment fees, market volatility, or changes in contribution percentage over time.
- Always try to contribute at least enough to get the full employer match — it's free money!
- Consider Roth 401(k) options if you expect to be in a higher tax bracket in retirement.