How does a 401(k) employer match estimate work?
This calculator estimates your annual employee salary deferral, then applies the match formula you enter to eligible employee contributions. For example, with an $80,000 salary, an 8% deferral, and a 50% match on the first 6% of pay, the employee amount is $6,400 and the estimated employer match is $2,400, before any plan-specific adjustments.
Employee deferral = the lesser of (salary × your contribution rate) and the selected year's regular elective-deferral limit. Eligible pay = the lesser of entered salary and the IRS annual compensation limit shown for that year. Matchable employee amount = the lesser of employee deferral and (eligible pay × match threshold). Estimated employer match = matchable employee amount × employer match rate. The combined estimate adds employee deferrals and the employer match.
For 2026, the IRS lists a $24,500 regular elective-deferral limit and a $360,000 compensation limit; for 2025, those amounts are $23,500 and $350,000. The 2026 deferral limit is shared across applicable plans and employers, so this single-plan estimate cannot know what you have already deferred elsewhere. Source and date: IRS, 401(k) and profit-sharing plan contribution limits and 2026 limit announcement (accessed 2026-11-03).
Actual matching can depend on plan definitions of compensation, per-pay-period versus annual calculations, contribution timing, eligibility, vesting, true-up provisions, and plan limits. This simplified estimator assumes the entered match rate applies uniformly to eligible employee deferrals up to the entered threshold. It does not model age-based catch-up contributions, Roth versus pre-tax treatment, taxes, investment growth, other employer contributions, or annual-additions limits. Check your summary plan description or plan administrator for the governing terms.
Frequently asked questions
What does “50% match on the first 6%” mean here?
It means the employer contributes 50 cents for each eligible employee dollar, up to employee deferrals equal to 6% of eligible pay. Under the example inputs, the maximum modeled match is 3% of eligible pay.
Does the employer match count toward the employee deferral limit?
The regular elective-deferral limit applies to employee salary deferrals. Employer matching contributions are treated separately for that limit, but other overall plan contribution limits can apply. See the IRS contribution-limit source above and your plan terms.
Why is the match lower than my plan's estimate?
Your plan may use a different definition of eligible compensation, calculate matches each pay period, require eligibility or service conditions, or apply additional limits. This tool uses only the inputs and annual limits stated on the page.
Does this include catch-up contributions?
No. The estimate applies the regular elective-deferral limit shown for the selected year and does not determine age-based eligibility or catch-up treatment.