Retirement
Employer match from a match rate
A 50% match pays half of what you contribute, up to any cap the employer sets.
The Formula
M = C x matchRate
A 50% match pays half of what you contribute, up to any cap the employer sets.
| Symbol | Meaning | Unit | Notes |
|---|---|---|---|
| C | Annual contribution | currency | Your yearly deposit. |
| m | Match rate | rate | Fraction the employer matches. |
What Each Symbol Means
Ccurrency
Annual contribution
Your yearly deposit.
mrate
Match rate
Fraction the employer matches.
See It Worked With Real Numbers
A formula on its own does not tell you which number goes where. The how to calculate 401(k) growth page applies this equation to a concrete case, shows every intermediate step, and names the mistakes that produce a wrong answer even when the algebra is right.
Where This Formula Appears
This equation is the working core of How To Calculate 401(k) Growth, filed under Finance. Every number the guide produces comes from substituting into this one line.