401(k) Contribution and Employer-Match Calculator
Calculate employee contributions, employer match and a long-term compound-growth scenario using 2026 limits.
What this calculator explains
Employer matching formulas vary. A plan may match 100% of the first 3% of pay, 50% of the next 2%, use several tiers, impose a dollar cap or calculate contributions per paycheck. The calculator lets users reproduce the formula in the Summary Plan Description instead of forcing one common match design.
The results distinguish the employee elective-deferral limit from the higher overall annual-additions limit. They also show how front-loading contributions can reduce the match when a plan calculates per payroll and does not provide a true-up.
How the estimate is calculated
- Calculate eligible compensation per payroll and for the year.
- Apply the employee’s percentage or dollar deferral, subject to the selected annual limit.
- Apply each employer-match tier only to the compensation band covered by that tier.
- Cap the match according to plan rules and eligible compensation.
- Model per-paycheck matching and optional year-end true-up.
- Add optional compound-growth projection without presenting it as guaranteed.
Formula
Employer match = sum of each match rate × employee contribution within that tier’s eligible compensation band
Worked example
An employee earning $80,000 contributes 6%, or $4,800. The employer matches 100% of the first 3% of pay and 50% of the next 2%. The modeled match is 3% + 1% = 4% of salary, or $3,200, producing $8,000 of total annual contributions before investment returns.
Current rules and configuration notes
- The 2026 employee elective-deferral limit is $24,500 for applicable 401(k) plans.
- The standard age-50 catch-up limit is $8,000, while the higher catch-up for eligible participants aged 60–63 is $11,250.
- The 2026 overall annual-additions limit is generally the lesser of 100% of compensation or $72,000 before applicable catch-up contributions.
- The employer’s Summary Plan Description—not a default formula—is the authority for matching tiers, per-pay-period calculations, caps, vesting and true-up.
Update requirement: Update employee deferral, catch-up, compensation and overall contribution limits every calendar year.
Included in the estimate
- Percentage and dollar employee deferrals
- Traditional and Roth combined limit tracking
- Multiple employer-match tiers
- Per-paycheck matching and optional true-up
- 2026 regular and catch-up limit checks
- Optional long-term projection
Not included or not guaranteed
- Vesting schedules unless entered
- Nondiscrimination testing or highly compensated employee limits
- Investment fees, taxes and market returns unless entered
- Plan-specific eligible compensation definitions
- Retirement or investment advice
Frequently asked questions
How much should I contribute to get the full match?
Enter the exact plan formula. The calculator will find the lowest modeled contribution rate that captures every available matching tier.
What is the 401(k) employee limit for 2026?
The IRS lists a $24,500 elective-deferral limit for traditional and safe-harbor 401(k) plans in 2026, with additional catch-up limits where eligible and permitted.
Does the employer match count toward my employee limit?
Employer contributions do not use the employee elective-deferral limit, but they count toward the separate overall annual-additions limit.
Can I contribute to both traditional and Roth 401(k)?
Yes when the plan permits, but the employee deferrals generally share one combined annual limit.
What is a true-up contribution?
A true-up can restore match that was missed because contributions varied or reached the employee limit before year end. Plan rules determine whether one is provided.
Is the growth projection guaranteed?
No. It is a mathematical scenario based on the entered return and does not predict investment performance.
Official sources
Applicable period: 2026 · Last reviewed: September 3, 2026
Display the applicable period and a real Last reviewed date beside this source list.
Recommended internal links
See the paycheck effect
Send the selected contribution percentage to the paycheck calculator and compare estimated take-home pay before and after the change.
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