401(k) Match Calculator
Your employer match is free money, but only if you contribute enough to grab it. See what it's worth and whether you're leaving any behind.
You’re leaving $975/yr on the table.
Contribute at least 6% of your pay to grab the full $1,950/yr match. That’s an immediate return few investments can match (subject to your plan’s vesting schedule).
General information, not investment, tax, or legal advice. Full note at the bottom of the page.
How the match works
A 401(k) match is money your employer adds to your retirement account when you contribute from your paycheck. The match usually has two parts: a rate (how much they add per dollar you put in, often 50 cents or a full dollar) and a cap (the share of your pay they'll match on, often 6%).
The math is simple: your employer matches their rate on every dollar you contribute, up to the cap. Contribute below the cap and you only get part of the match, the rest disappears. That gap is the "free money on the table" this calculator shows you. Capturing the full match is almost always the first move in any plan, ahead of paying down low-rate debt or investing elsewhere, because the return is instant and guaranteed.
One thing to check in your plan: vesting. Some employers require you to stay a few years before their matching contributions are fully yours. Your own contributions are always yours.
Frequently asked questions
What is a 401(k) match?
It's extra money your employer puts into your 401(k) when you contribute. A common formula is a 50% match up to 6% of your pay, meaning for every dollar you put in (up to 6% of salary), your employer adds 50 cents.
What does '50% match up to 6%' mean?
Your employer matches 50 cents per dollar you contribute, but only on the first 6% of your salary. If you make $60,000 and contribute 6% ($3,600), your employer adds $1,800. Contribute less than 6% and you get less than the full match.
How much should I contribute to get the full match?
At least up to the cap in your plan (6% in the example above). Contributing enough to capture the entire match is almost always the highest-priority money move, because the match is an instant, guaranteed return.
Is the employer match really free money?
Yes. It's compensation you only receive if you contribute. Skipping it is like turning down a raise. No investment can promise the kind of immediate return a full match gives you.
Is there a limit on 401(k) contributions?
Yes, the IRS caps how much you can contribute to a 401(k) each year, and the limit is adjusted annually. The match is separate from your own contribution. This tool focuses on capturing the match, which comes well below the annual limit for most new grads.
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For general information only. These calculators use simplified, current-year assumptions and are not tax, legal, or investment advice. Your actual numbers depend on your full situation. Dividnd is not a registered investment adviser.