IRA Calculator – Estimate Retirement Savings Growth
Project a traditional IRA balance and compare it with a Roth-style outcome.
About the IRA Calculator
What is the IRA Calculator?
An IRA calculator projects a traditional Individual Retirement Account balance and estimates the after-tax value when withdrawals are taxed as income.
Why use this calculator?
Traditional IRAs offer a tax deduction now in exchange for taxes later. Projecting the balance and after-tax value helps you decide between a traditional and a Roth IRA.
How to use it
- Enter your current balance and annual contribution.
- Enter an expected return and the years to retirement.
- Add your expected retirement tax rate.
Formula
FV = balance×(1+r)^n + Σ contributions; after-tax = FV × (1 − tax rate).
Subject to annual contribution limits. Required minimum distributions apply after age 73.
Frequently Asked Questions
When can I withdraw from an IRA penalty-free?
Generally after age 59½. Early withdrawals may incur a 10% penalty plus income tax, with limited exceptions.
Are IRA contributions tax deductible?
Traditional IRA contributions may be deductible depending on your income and whether you have a workplace plan. Roth contributions are not deductible.
What is compound interest?
Compound interest is interest earned on both your original money and on previously earned interest. Over time it can make savings grow much faster than simple interest.
What is the difference between nominal and effective return?
The nominal return ignores compounding within the year, while the effective (annualised) return accounts for it. The effective figure is usually higher and better reflects real growth.
How does inflation affect my returns?
Inflation erodes purchasing power. The real return is the nominal return minus inflation, so an investment can grow in dollars yet still lose value in what it can buy.
What rate of return should I assume?
A common long-term assumption for a diversified stock portfolio is about 6% to 8% per year after inflation, but returns vary and are never guaranteed.
Does this account for taxes and fees?
Unless stated, the tool shows pre-tax, pre-fee growth. Subtract your fund expense ratio and expected tax rate to estimate what you keep.
Is this calculator free to use?
Yes. Every calculator on this site is completely free, with no hidden fees, no subscriptions and no limits on how many times you can use it.
How accurate are the results?
We use standard, widely accepted formulas and calculate in your browser using double-precision arithmetic. Results are rounded for readability, so treat them as reliable estimates rather than a guarantee. Real-world factors can vary the true figure.
Can I add this calculator to my own website?
Yes. Open this calculator page and use the "Add to your website" box in the sidebar to copy a ready-made iframe snippet, then paste it into any HTML page.