IRA Calculator
Project the growth of an Individual Retirement Account based on your contributions.
Your Details
Contributions vs. Growth
What makes up your final balance
- Contributed$111.0K
- Growth$158.0K
Final Balance by Rate of Return
Sensitivity to your assumed return
Balance Growth Over Time
Total balance year by year
Contributed vs. Growth by Year
How growth accelerates over time
How It Works
- Enter your starting balance and regular contribution.
- Enter your expected annual rate of return.
- Set your time horizon in years.
- Press Calculate to update your results and charts.
Formula Used
P = current IRA balance, r = periodic rate, t = number of periods, PMT = contribution per period.
Good to Know
- • Starting earlier matters more than contributing more later.
- • Small rate differences compound into large gaps over decades.
- • Consistent contributions smooth out market swings.
Important Notes
- • Returns are assumed, not guaranteed.
- • Figures don't account for taxes or fees unless noted.
- • Past performance doesn't predict future results.
What Makes an IRA Different
An IRA (Individual Retirement Account) is opened and funded independently of an employer, which makes it flexible — you choose the provider and investments — but it also means there's no employer match to boost contributions the way some workplace plans offer. Annual contribution limits are set by the IRS and are lower than typical 401(k) limits, so many people use an IRA to supplement rather than replace workplace retirement savings.
Traditional vs. Roth: The Core Trade-off
This calculator projects growth generically; the real difference between IRA types is tax timing. Traditional IRA contributions are typically tax-deductible now, with withdrawals taxed in retirement. Roth IRA contributions are made after tax, but qualified withdrawals in retirement are tax-free. Which is better generally depends on whether you expect your tax rate to be higher now or in retirement.
A Closer Look at the Terms
- IRA (Individual Retirement Account) — a tax-advantaged account opened independently of an employer.
- Contribution limit — the IRS-set annual cap on how much can be added to an IRA.
- Catch-up contribution — an additional amount savers age 50+ are permitted to contribute.
From Theory to Numbers: Maxing Out Contributions Over 20 Years
Starting with $15,000 and contributing $400/month at a 7% assumed annual return:
Growth of principal: 15,000 × 1.005833^240 ≈ $60,580
Growth of contributions ≈ $208,450
Total future value ≈ $269,030
Total contributed over 20 years: $15,000 + ($400 × 240) = $111,000. The remaining roughly $158,000 came from compounding — again more than the amount actually contributed, underscoring how much of an IRA's eventual value comes from time in the market rather than the size of any single contribution.
Contribution Level Table
$15,000 start, 20 years, 7% return:
| Monthly | Future Value |
|---|---|
| $200 | $166,900 |
| $400 | $269,030 |
What People Get Wrong With IRA Contributions
- Exceeding the annual contribution limit — triggers excess contribution penalties.
- Not choosing between Traditional and Roth deliberately — the right choice depends on current vs. expected future tax rate.