Using the IRA Calculator
Use monthly contributions as a planning equivalent if you normally contribute in one annual payment. The timing will not be identical, but it can help compare saving habits. Enter zero for employer contributions in an ordinary personal IRA scenario.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Starting balance
- 10000
- Monthly contribution
- 200
- Annual nominal return (%)
- 5
- Years
- 10
- Employer monthly contribution (if any)
- 0
- Withdrawal tax assumption (%)
- 20
Example result
- Future balance
- 47,526.55
- Total contributions
- 34,000
- Growth
- 13,526.55
- After assumed withdrawal tax
- 38,021.24
Method and assumptions
Projection only. Contributions, employer match and tax treatment are user assumptions; eligibility, statutory limits, penalties and required distributions are not evaluated. Roth qualified withdrawals may be tax-free.
Use consistent assumptions over time
A retirement projection depends on when contributions or withdrawals happen, the rate used and the number of periods. Keep those assumptions visible when comparing scenarios. An amount expressed in future currency is not automatically equivalent to the same amount of purchasing power today. Tax treatment and account rules should be checked separately wherever the model does not include them.
Common question
Does this tell me whether my contribution is deductible?
No. Deductibility depends on circumstances such as income, filing status and workplace plan coverage. Establish the contribution and tax assumptions before using the projection.
Guide updated .