401(k) Employer Match Calculator — The Free Money on the Table

What an employer match is

An employer match is money your employer adds to your 401(k) based on what you contribute from your own pay. A common formula matches your contributions in tiers — for example, 100 percent of the first 3 percent of salary you contribute plus 50 percent of the next 2 percent, which fully pays out once you contribute 5 percent. The match is compensation you receive only if you contribute enough to trigger it. Enter your salary, your contribution rate, and your plan's formula in the calculator to see the match you earn and the additional match you forgo by contributing below the full-match threshold.

Why the full match comes first

The match is an immediate, guaranteed return before any market growth: a dollar-for-dollar match is an instant 100 percent return on that dollar, and a fifty-cent match is an instant 50 percent return — well above what a diversified portfolio is expected to earn in a year. That is why capturing the entire match is widely treated as a first-priority move, ahead of most other investing decisions. The calculator compounds the match gap at a return you choose so you can see what leaving it on the table costs over time.

Vesting and the contribution limit

Your own contributions are always fully yours. Employer match dollars may be subject to a vesting schedule — immediate, cliff, or graded — so leaving before you are fully vested can forfeit the unvested match; check your plan documents. The IRS also caps annual employee contributions and indexes the cap to inflation: the employee deferral limit was 23,000 dollars for 2024 and 23,500 dollars for 2025, with catch-up amounts for those 50 and older, and a separate higher limit caps your contributions plus the match combined. These figures change year to year — confirm the current numbers with the IRS. For where retirement accounts sit alongside cash and growth, read the redundancy-first money framework.

Frequently asked

What is a 401(k) employer match?

An employer match is money your employer adds to your 401(k) based on what you contribute from your own pay. A common formula is a full match on the first few percent of salary you contribute and a partial match on the next few percent — for example, 100 percent of the first 3 percent plus 50 percent of the next 2 percent. The match is compensation you only receive if you contribute enough to trigger it, which is why it is often described as free money. This is educational only and not financial advice.

Why is capturing the full match the highest-priority move?

Because the match is an immediate, guaranteed return on your contribution before any market growth. A dollar-for-dollar match is an instant 100 percent return on that dollar, and a fifty-cent match is an instant 50 percent return — far above what a diversified portfolio is expected to earn in a year. Contributing at least enough to capture the entire match is widely treated as a first step because leaving it uncaptured forgoes guaranteed money. This is general education, not a recommendation for your situation.

What is vesting and does it affect the match?

Vesting is the schedule on which employer contributions become fully yours. Your own contributions are always 100 percent vested immediately. Employer match dollars may vest immediately, on a cliff schedule (fully vested after a set number of years), or on a graded schedule (a rising percentage each year). If you leave before you are fully vested, you can forfeit the unvested portion of the match. Check your plan documents for your exact schedule. This is educational only.

What is the 401(k) contribution limit?

The IRS sets an annual limit on employee 401(k) contributions and indexes it to inflation, so it can change each year. The employee deferral limit was 23,000 dollars for 2024 and 23,500 dollars for 2025, with additional catch-up amounts for those age 50 and older. A separate, larger overall limit caps the combined total of your contributions plus the employer match. Because these figures change, confirm the current-year numbers on the official IRS site rather than relying on a memorized value.

Does the match count toward my contribution limit?

The employer match does not count against the employee deferral limit — that limit applies only to the money you contribute from your pay. Employer contributions do count toward a separate, higher overall limit on total additions to the account for the year. In practice most people capture the full match well before reaching either cap. Confirm the current limits with the IRS or your plan administrator.

Does Obsidian Metrics recommend a contribution amount?

No. This is a free educational tool. It estimates the match your inputs would earn and the additional match available if you contributed up to the full-match threshold, using a simplified annual model. It does not tell you how much to contribute, account for your budget or debts, or model your plan's exact rules. Those decisions belong with your plan documents and a qualified professional. We are not financial or tax advisors.