Employer Match
Capture every cent of the employer match — the cheapest 50% return you'll ever get.
See what you're capturing from your employer match — and what you're leaving on the table.
Built and reviewed by Stephen Omukoko Okoth
Mathematical Economist · ex-Morgan Stanley FI · Equilar
Inputs
Your salary & contribution
Plan rules
Employer match formula
Long-run
Growth horizon
Verdict
Missing $ 800/yr in match.
Raise your contribution to 6% to capture the full match. Compounded over 30 years at 7%, that's ~$ 244.0K more.
Employer matching is one of the few times finance literally hands you free money. If a 50% match is on the table and you don't take it, you've effectively turned down a 50% one-year return.
This year
Where the money goes
You contribute
$ 3.2K
Employer contributes
$ 1.6K
Total going in
$ 4.8K
Match left behind
$ 800
By retirement
In 30 years at 7%
Your projected balance
$ 488.0K
If you captured full match
$ 732.0K
Common questions
Why is employer matching often called free money?
If the employer matches 50% of contributions up to 6% of salary, every dollar you contribute up to the cap returns 50¢ immediately — a 50% guaranteed return that no public market can match. Failing to capture it is one of the most expensive small mistakes in personal finance.
Should I always contribute at least up to the match cap?
Almost always, yes — unless you have very high-interest debt (credit card APRs > 20%) where paying it off beats even the match. Beyond that, match capture is essentially mandatory math, not a preference.
What's vesting and why does it matter?
Vesting is how long you must stay with the employer before their contributions become yours. Cliff vesting (e.g. 100% after 3 years) means leaving early forfeits all match. Graded vesting (20% per year over 5 years) phases it in. Read your plan document; this materially changes the comparison if you might leave.
Does this calculator work outside the US?
Yes. The same mechanics apply to UK workplace pensions (auto-enrolment minimums), Kenyan voluntary pension top-ups, Canadian RRSP group plans, Australian superannuation co-contributions, and similar schemes worldwide. The vocabulary changes; the math doesn't.