KiwiSaver calculator

What your KiwiSaver balance becomes, counting all three sources — your contribution, the employer contribution after ESCT, and the government contribution.

Covers 2026-27 tax year · rates as at 2026-04-01

2026-27 tax year

Projected after 25 years

Estimate

$406,686

4,596 a year going in from all three sources

Your contribution: $2,550.00
Employer, after ESCT: $1,785.00
Government contribution: $261.00

Projected balance

Breakdown of Projected after 25 years
Salary	$85,000
You contribute 3%	$2,550.00
Employer contributes 3%	$2,550.00
ESCT at 30.0%	-$765.00
Government contribution	$261.00
Total into your account each year	$4,596.00

You are receiving the full $260.72 government contribution — contributing more does not increase it.
ESCT at 30.0% is deducted from the employer contribution before it reaches you, so "3% employer" is never 3% in your balance.

On $85,000 at 3% you put in $2,550, your employer adds $2,550 gross but roughly $1,760 after ESCT, and the government adds up to $260.72.

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Projected after 25 years

Estimate

$406,686

4,596 a year going in from all three sources

Your contribution: $2,550.00
Employer, after ESCT: $1,785.00
Government contribution: $261.00

Projected balance

Breakdown of Projected after 25 years
Salary	$85,000
You contribute 3%	$2,550.00
Employer contributes 3%	$2,550.00
ESCT at 30.0%	-$765.00
Government contribution	$261.00
Total into your account each year	$4,596.00

You are receiving the full $260.72 government contribution — contributing more does not increase it.
ESCT at 30.0% is deducted from the employer contribution before it reaches you, so "3% employer" is never 3% in your balance.

On $85,000 at 3% you put in $2,550, your employer adds $2,550 gross but roughly $1,760 after ESCT, and the government adds up to $260.72.

How this is calculated

Three sources, and only one is fully yours

Your 3% goes in whole. The compulsory 3% employer contribution is taxed at your ESCT rate first, so about $1,760 of $2,550 arrives. The government adds 25c per dollar to $260.72 a year.

annual = employee + employer × (1 − ESCT) + government

The government contribution caps early

It is 25 cents per dollar you contribute, to a maximum of $260.72 — reached at about $1,043 of your own contributions a year. Beyond that point contributing more adds nothing from the government.

government = min(260.72, 25% × your contribution)

ESCT rises with your income

The rate on the employer contribution follows a separate threshold table running from 10.5% to 39%. A higher salary means a larger gross employer contribution but a smaller share of it reaching your account.

Worked example: $85,000 salary at 3%, $45,000 balance, 25 years to go

Inputs
Salary	$85,000
Your rate	3%
Balance	$45,000
Return	5.5%

Result
You add	$2,550
Employer, net	about $1,760
Government	$260.72

Moving from 3% to 4% adds $850 of your own money a year and nothing extra from your employer or the government — the match and the top-up are both already maxed.

What this assumes

Continuous employment at this salary.
A constant return after fees.
Contributions from salary only, no lump sums.
Eligible for the full government contribution.

Where this commonly goes wrong

A savings suspension stops your contributions, and with them the employer contribution and most of the government contribution — the cost is roughly triple what you stop paying.
The government contribution runs on the year to 30 June, not the tax year, so contributing only from July leaves part of it unclaimed.
Default funds are conservative, and over 25 years the difference between a conservative and a growth fund commonly exceeds the entire employer contribution.

Questions

How much should I contribute to KiwiSaver?

At least 3% to secure the full employer contribution, and about $1,043 a year to capture the whole $260.72 government contribution. Above that it is a normal saving decision with no extra incentive attached.

How much does my employer actually put in?

A compulsory 3% of gross pay, but ESCT is deducted first. On $85,000 that is $2,550 gross and roughly $1,760 reaching your account, with the exact figure set by your ESCT rate.

What is the government contribution?

25 cents for every dollar you contribute, to a maximum of $260.72 a year, paid if you are 18 or over and mainly living in New Zealand. It is calculated on the year to 30 June rather than the tax year.

What is ESCT?

Employer superannuation contribution tax, charged on the employer contribution at 10.5% to 39% depending on your total income. It is why the 3% your employer pays is never 3% in your balance.

Should I take a savings suspension?

Only as a last resort. Stopping your $2,550 also stops roughly $1,760 of employer money and most of the $260.72 government contribution, so the real cost is about $4,570 for every $2,550 you keep.

Does my fund choice matter more than my rate?

Often yes. Over 25 years the gap between a conservative and a growth fund commonly exceeds the total employer contribution, and the default fund most people are assigned is on the conservative side.

Related tools

Sources

General estimate based on published Inland Revenue rates for 2026-27 tax year. Not tax advice. Confirm your position with IR or a qualified adviser.