ESOP Contribution Calculator — Employee Stock Ownership Plan Limits

What is this? An ESOP (Employee Stock Ownership Plan) lets company owners transfer ownership to employees in a tax-advantaged way. Contributions to an ESOP are tax-deductible up to 25% of eligible payroll. S-Corp owners with ESOPs pay ZERO federal income tax on company profits.

The key benefits: Tax-deductible contributions fund the buyout of departing owners. Employees earn real ownership stake. The company gets a tax write-off equal to the contribution amount.

Who it's for: Business owners planning a succession, companies wanting to share ownership with employees, or anyone evaluating an ESOP as a retirement plan.

Company & Plan Details

Company Valuation ($)

Annual Payroll ($)

ESOP Allocation This Year (%)

Number of Eligible Employees

Company Structure

Vesting Period (years)

Contribution Limits & Allocations

Max Deductible Contribution

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Shares Allocated (value)

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Per Employee Allocation

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Annual Tax Savings

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As % of Payroll

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Fully Vested After

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ESOPs are complex ERISA plans requiring professional administration. Consult an ESOP attorney and CPA before establishing a plan.