Finance & Money
401(k) Contribution Calculator
Apply the entered match formula only to eligible employee contributions, combine employee and employer dollars, and project the current balance plus average monthly funding.
Annual employee contribution-
Employee contribution eligible for match-
Annual employer contribution-
Total annual contribution-
Average monthly funding-
Projected balance with combined monthly funding-
Employee share of annual funding-
Decision view
Employee contribution and employer match
Employee contribution and employer matchEmployee deferrals and employer matching combine before long-term compounding.
Exact scenario comparisonEmployee deferral (%) changes while all other entered assumptions remain constant.
| Employee deferral (%) | Annual employee contribution | Employee contribution eligible for match | Annual employer contribution | Total annual contribution | Average monthly funding | Projected balance with combined monthly funding | Employee share of annual funding |
|---|
Period-by-period detail
401(k) contribution growth schedule
How to use 401(k) Contribution Calculator
- Confirm eligible compensation in the plan document.
- Enter the employee deferral and exact matching formula.
- Review annual funding before interpreting the long-term projection.
Calculator guide
Understanding 401(k) Contribution Calculator
A 401(k) contribution projection should distinguish employee salary deferrals, the portion eligible for match, employer funding, and investment growth.
Calculation method
How the calculation works
Calculate 401(k) contributions from employee deferrals, the entered match formula, employer funding, and a combined long-term balance projection. Multiply salary by the employee rate, cap match-eligible pay at the entered match limit, apply the employer match rate, then compound the current balance with combined monthly funding.
Match anatomy
Read the plan formula in two parts
The match rate and the salary limit answer different questions.
Worked situations
Practical examples
- A 50% match up to 6% of salary produces at most 3% of salary from the employer.
- Contributing above the match limit can still increase employee savings.
- Employer money may be subject to vesting.
Better inputs
Useful tips
- Capture the full available match when appropriate.
- Check annual employee limits.
- Use a conservative return range rather than one forecast.
Before relying on the result
Limitations and common mistakes
- Contribution limits, payroll timing, fees, taxes, vesting, and changing returns are not fully modeled.
- The match formula is simplified to one rate and limit.
- The projection is not a guarantee.
Reference
Key terms
- Employee deferral
- Salary directed by the participant into the plan.
- Match limit
- Maximum salary percentage considered under the entered match formula.
- Employer contribution
- Plan funding calculated from the eligible employee amount.
- Combined funding
- Employee and employer contributions together.
Important note
Calculated from the entered values and stated financial terms. It is not a product quote, lending decision, tax filing, or investment recommendation.
Frequently asked questions
Does a 50% match mean 50% of salary?
No. It applies only to the eligible employee contribution under the entered limit.
Does the result enforce IRS limits?
No.
Is employer money always vested?
Not necessarily.
Why use monthly funding in the projection?
It provides a transparent recurring-contribution convention.