About the IRA Calculator
A traditional IRA lets you invest money before tax and pay tax only when you take it out in retirement, so all of your growth compounds without yearly tax bills. This calculator projects your IRA balance from your current savings, yearly contributions, expected return and the years left until you retire. It then shows the value after paying tax at your expected retirement rate, the tax saved on contributions along the way, and how much the same money would grow to in an ordinary taxable account. Everything is calculated in your browser.
Updated October 2026
How to use the IRA Calculator
- 1Enter your current IRA balance.
- 2Enter how much you plan to contribute each year.
- 3Enter the years until retirement and the yearly return you expect.
- 4Enter your tax rate now and the rate you expect in retirement.
- 5Compare the IRA after tax with the taxable account.
How the projection works
The calculator adds each year's contribution at the start of the year and grows the whole balance at your chosen return. At the end it applies your retirement tax rate to the full balance, because every dollar in a traditional IRA is taxed when it comes out. That after-tax figure is what you can actually spend.
The taxable account comparison
To be fair, the comparison starts with the same pre-tax money. In a taxable account you first pay tax on each contribution, then pay tax on the growth every year, so the money compounds more slowly. The difference between the two after-tax figures shows the value of tax deferral.
- IRA: full contribution invested, taxed once at the end
- Taxable account: contribution taxed first, growth taxed yearly
- Bigger gap with longer time and higher returns
Things the estimate leaves out
Real returns go up and down, inflation reduces what the money buys, and capital gains and dividends are often taxed at lower rates than income, which narrows the gap. Fees matter too: a 1% yearly fee can cut the final balance by a fifth over 25 years. Use the result to compare choices rather than as a promise.
Making the most of an IRA
Contributing early in the year gives your money more time to grow. Automatic monthly transfers make it easier to reach the limit. Low-cost index funds keep fees down. If your employer offers a 401(k) match, take the full match first, because it is an instant return on your money.
On any device
The six boxes work well on a phone or a laptop, and the answer updates as you type. An IRA is one part of a retirement plan, so see how it compares. Try the Roth IRA Calculator for tax-free growth, the 401(k) Calculator for a workplace plan, and the Retirement Calculator to see whether your savings reach your goal.
Features
- Balance at retirement
- After-tax value
- Tax saved on contributions
- Comparison with a taxable account
- Shows growth separately from contributions
- No sign-up, nothing stored
Frequently asked questions
How does a traditional IRA save tax?
Contributions may be deductible, so you pay less income tax today, and investments grow without tax until you withdraw them. Withdrawals in retirement are taxed as ordinary income.
How much can I put into an IRA each year?
The IRS sets a yearly limit that usually rises with inflation, with an extra catch-up amount from age 50. Check the current figure on irs.gov before you plan.
Traditional or Roth IRA?
A traditional IRA tends to win if your tax rate in retirement will be lower than now; a Roth tends to win if it will be the same or higher. Our Roth IRA calculator shows the other side.
Can I deduct my contributions?
It depends on your income and whether you or your spouse have a workplace retirement plan. Above certain incomes the deduction shrinks or disappears, but you can still contribute.
What return should I use?
Many planners use 5% to 7% a year for a stock-heavy mix before inflation, and less for bonds. Try a few rates to see the range.
When can I take money out without a penalty?
Generally from age 59½. Earlier withdrawals usually face a 10% additional tax unless an exception applies, and RMDs start at 73 or 75.