401K Matching Calculator

How to Use the 401(k) Matching Calculator

This 401(k) Matching Calculator is designed to help you estimate your retirement contribution based on your salary and your employer’s matching policy. Follow the step-by-step guide below to use the calculator effectively.

Step 1: Input Your Annual Salary

Enter your yearly salary in the Annual Salary ($) field. It should be a whole number between $1,000 and $1,000,000.

Step 2: Specify Your Contribution Percentage

In the Your Contribution Percentage (%) field, input the percentage of your salary you wish to contribute to the 401(k). You can enter a value between 0% and 100%, with increments of 0.1%.

Step 3: Choose Employer Match Type

Select the Employer Match Type based on your company’s matching policy. You have two options:

• Percentage of Contribution: The employer matches a certain percentage of your contribution.
• Dollar for Dollar: The employer matches every dollar you contribute up to a certain limit.

Step 4: Enter Employer Match Percentage

Depending on the match type selected, enter the percentage your employer is willing to match in the Employer Match Percentage (%) field. This should be between 0% and 100%, with increments of 0.1%.

Step 5: Set the Employer Match Limit

Fill in the Employer Match Limit (% of Salary) field. This indicates the maximum percentage of your salary that your employer will match. Input a value between 0% and 100%, with increments of 0.1%.

Step 6: Review Your Results

After entering all necessary information, the calculator will provide the following results:

• Your Yearly Contribution: The total amount you will contribute annually to your 401(k), displayed in USD.
• Employer Match Amount: The total amount your employer will contribute to your 401(k) based on the matching policy, displayed in USD.
• Total Yearly Contribution: The combined total of your contribution and the employer’s match, shown in USD.
• Monthly Contribution: Your monthly contribution based on the yearly contribution, provided in USD.
• Total Match as Percentage of Salary: The equivalent percentage of your salary represented by the employer’s match.

Be sure to review these results to understand the impact of your contributions and the benefits of your employer’s matching policy. Adjust the input fields as necessary to explore different scenarios and optimize your retirement savings strategy.