Little Money Matters Employer Match Shortfall Calculator

Many employers add to a retirement account when an employee contributes, but usually only up to a set point. Contributing less than that point means part of the employer match goes unclaimed. This calculator shows how much match your current contribution earns, how much is left unclaimed each year and each pay period, what extra contribution would capture the rest, and what that unclaimed amount could grow to over time. The example figures are illustrative; replace them with the terms of your own plan.

An employer match is a contribution the employer makes based on what the employee contributes. A common design is to match a percentage of the employee's contribution up to a share of pay, for example 100% of the first 3% and 50% of the next 2%. Any contribution below the top of that range earns a smaller match, and the difference is the shortfall this tool measures. Contributing more reduces take-home pay and the money is generally locked in until retirement age, so the shortfall is one input to weigh and not a conclusion on its own.

How to use it

1. Enter your salary, your contribution as a percentage of pay, and your pay frequency.
2. Enter your plan's match formula from your plan documents. Use the second tier only if your plan has one; otherwise set it to zero.
3. Read the match you receive, the shortfall and the table of other contribution rates. The illustration at the end is optional.

Currency$ (US dollar)£ (British pound)€ (euro)

Annual payPay the match is calculated on.

Your contribution (% of pay)

Pay frequencyMonthly (12)Twice a month (24)Every two weeks (26)Weekly (52)

Employer match formula

Tier 1: match rate (%)For example 100 means $1 per $1.

Tier 1: applies to first (% of pay)

Tier 2: match rate (%)Set to 0 if there is no second tier.

Tier 2: applies to next (% of pay)

Contribution limit

Plan year20272026

Age during the yearUnder 5050 or over (not 60 to 63)60 to 63

Limit appliedIRS employee limit incl. any catch-up.

Optional: long-run illustration

YearsHow long the shortfall repeats.

Assumed return (% a year)Illustrative, not a forecast.

How it is calculated

• Match = pay × [ tier 1 rate × the smaller of your contribution % and tier 1 limit + tier 2 rate × the smaller of the rest of your contribution % and tier 2 limit ].
• Maximum match is the match at the lowest contribution % that reaches the top of the formula (tier 1 limit plus tier 2 limit, or tier 1 limit alone if tier 2 is zero), capped by the IRS employee limit.
• Shortfall = maximum match − the match at your current contribution. Per pay period = annual figure ÷ pay periods.
• Extra contribution needed = the contribution at the top of the formula − your current contribution.
• Long-run illustration: the annual shortfall is added at the end of each year and grown at the assumed return: shortfall × ((1 + return)^years − 1) ÷ return. Pay, the formula and the return are held constant.
• Worked example with the default inputs: pay of 80,000, a 2% contribution and a match of 100% on the first 3% and 50% on the next 2%. The match received is 1,600, the maximum is 3,200 (at 5%), the shortfall is 1,600 a year (61.54 per pay period over 26 periods), and capturing it needs 2,400 more a year from the employee. Repeated for 20 years at 5%, the shortfall illustrates to about 52,906.

Assumptions and limits

• Contribution limits shown are the IRS employee elective deferral limits: 2026 is 24,500 (catch-up 8,000 from age 50; 11,250 at ages 60 to 63) and 2027 is 25,500 (catch-up 8,500; 11,750 at ages 60 to 63), from IRS announcement IR-2026-136 and Notice 2026-66. Limits change each year, so check IRS.gov for the current figures. Your plan may set lower limits.
• An IRS cap on the pay that plans can take into account also applies and is not modelled. It matters only at high salaries.
• Plans differ. Some calculate the match each pay period, which can reduce the match if contributions stop early in the year, and some use an annual true-up. Some cap the match in dollars, require a waiting period, or vest the match over several years so that part may be forfeited on leaving. None of this is modelled, so check your plan documents.
• Tax is ignored. Pre-tax contributions lower taxable pay now and withdrawals are generally taxed later, and Roth contributions work the other way.
• The long-run figure is arithmetic on an assumed constant return. Investment returns vary and can be negative, and the figure is not a forecast.
• Higher contributions reduce take-home pay and are generally not available until retirement age without penalty. Whether and how much to contribute depends on personal circumstances this tool does not assess.

General information only, not personalised advice. Results are estimates based on the assumptions listed above. Read the disclaimer.