Retirement Calculator with 401(k) Employer Match
Employer 401(k) match is the closest thing to free money in personal finance. A typical 50% match on the first 6% of salary is a 50% instant return on contributions you would have made anyway. This guide shows how to factor match into a long-term retirement projection.
Use the calculator
Retirement Calculator
Step-by-step
- 1
Find your match formula
Common: 50% of first 6% (Microsoft, many F500), 100% of first 3% then 50% of next 2% (Google), or dollar-for-dollar up to a cap. Your HR portal lists exact terms.
- 2
Calculate combined contribution
On $100k salary with 50%-of-first-6% match: you contribute $6,000 (6%), employer adds $3,000. Total annual contribution = $9,000 even though you only put in $6k.
- 3
Use the Retirement Calculator
Enter your real combined monthly contribution ($750/mo in the example above). Set return at 7% (S&P 500 long-run after inflation).
- 4
Project to retirement age
A 30-year-old contributing $750/mo with match at 7% return reaches ~$915k by age 65. Without match, ~$610k. The match alone funds 15+ years of retirement.
- 5
Always contribute at least up to the match
If you contribute less than the match cap, you're leaving money on the table. Even if cash is tight, hit the match line first before any other savings goal.
💡 Tips
- Match has vesting schedules — you might forfeit unvested employer match if you leave too early. Check the cliff (3-year typical) before quitting.
- After hitting match cap, decide between traditional 401(k), Roth 401(k), or IRA. Roth wins if you expect higher tax bracket in retirement.
- IRS limits: $23,000/yr employee 401(k) contribution in 2026 ($30,500 if 50+). Match doesn't count toward your limit.
FAQ
Should I lower my 401(k) to pay off debt?
Almost never below the match. The match return (50-100%) beats any reasonable debt interest rate. Above the match, paying off 7%+ debt may beat investing.
What if my employer match is a "true-up"?
True-up means employer reconciles match annually so you get full match even if you front-loaded contributions. Most modern plans do this.
How does match affect Roth vs traditional?
Match goes in pre-tax (traditional) regardless of your contribution type. So a Roth 401(k) account is "split" — your contributions are Roth, employer match is traditional.