IRA Calculator - Retirement Savings & Tax Value
Project IRA growth and compare the estimated after-tax value of traditional and Roth account assumptions.
Enter your starting balance, annual contribution, return, retirement horizon, IRA type, and optional current and retirement tax rates.
IRA Calculator - Retirement Savings & Tax Value
Project IRA growth and compare the estimated after-tax value of traditional and Roth account assumptions.
About Traditional and Roth IRA Projections
An IRA calculator turns contribution habits and a return assumption into a retirement balance, then shows a simplified after-tax value. Traditional IRAs generally defer tax on contributions and growth until withdrawal. Roth IRAs are funded with after-tax dollars and, when rules are met, withdrawals of contributions and earnings are tax-free. The tax timing is the reason two identical contribution streams can support different spendable amounts.
The IRA calculator compounds the opening balance annually and adds end-of-year contributions as an ordinary annuity: projected balance = initial × (1 + return)^years + contribution × ((1 + return)^years − 1) ÷ return. Total contributions are the opening balance plus every annual deposit. Investment growth is the residual. For a traditional IRA the estimated after-tax value multiplies the projected balance by (1 − retirement tax rate). For a Roth IRA the after-tax value equals the projected balance in this simplified model. Current-year tax savings on traditional contributions are approximated as contribution × current tax rate × years and are not discounted.
A $10,000 start, $6,000 annual contribution, 7.5% return, and 25 years projects about $468,850.57, or $398,522.98 after a 15% retirement tax on a traditional account. The same engine with $0 start, $7,000 a year, 6% for 30 years on a Roth projects about $553,407.30 with no retirement-tax haircut in the model.
Contribution limits, income phase-outs, catch-up amounts, required minimum distributions, early-withdrawal penalties, and the 5-year Roth rule are not enforced. Returns are constant and contributions occur at year-end. Use the IRA calculator to compare traditional versus Roth tax timing under your own rate path, then confirm current IRS limits and eligibility before you fund an account. It is educational planning support, not tax advice. Employer plans, taxable brokerage accounts, and health savings accounts can change the household picture even when the IRA math is unchanged. Revisit contribution and tax-rate assumptions after a raise, a filing-status change, or a new IRS limit rather than treating one projection as permanent.
IRA Calculator Worked Examples
Use these worked scenarios to check inputs and understand how the estimate responds.
| Inputs | Result | Interpretation |
|---|---|---|
| $10,000 initial, $6,000 annually, 7.5% return, 25 years, traditional IRA, 15% retirement tax | About $468,850.57 projected; $398,522.98 after tax | Annual deposits are modeled at year end. |
| $0 initial, $7,000 annually, 6% return, 30 years, Roth IRA | About $553,407 projected and after tax | The simplified Roth result does not subtract retirement tax. |
| $50,000 initial, $6,500 annually, 5% return, 15 years, traditional IRA, 20% retirement tax | About $244,207 projected; $195,365.66 after tax | Contribution limits and eligibility are not enforced. |
How to Project IRA Savings and After-Tax Value
- Enter the current IRA balance, planned annual contribution, expected annual return, and years until retirement.
- Choose traditional or Roth and enter current and retirement tax rates if you want the after-tax comparison.
- Select Calculate to see projected balance, contributions, growth, and estimated after-tax value.
- Switch IRA type or the retirement tax rate and recalculate to compare traditional and Roth assumptions.
IRA Calculator FAQ
How does the IRA calculator treat traditional versus Roth accounts?
Both types use the same growth math. Traditional after-tax value is reduced by the retirement tax rate you enter. Roth after-tax value is shown equal to the projected balance, as if qualified withdrawals are tax-free.
Are IRS contribution limits applied?
No. You can enter any annual contribution. Check the current IRS limit, catch-up amount, and income phase-out for the tax year you are funding.
When are contributions added in the projection?
Contributions are modeled at year-end. Depositing at the beginning of each year would compound slightly more. The difference grows with the return rate and the number of years.
Does a lower retirement tax rate always favor a traditional IRA?
In this model, a lower retirement tax rate raises traditional after-tax value relative to Roth. Real decisions also depend on whether you pay today’s tax to fund a Roth, on future tax-law risk, and on required minimum distributions.
Why is current tax savings not the same as after-tax value?
Current tax savings estimates deductions on contributions during working years. After-tax value estimates what remains after tax on withdrawals. They answer different questions and are not added together.