IRA Calculator

Enter your current age, retirement age, starting balance, annual contribution, expected rate of return, and tax rates to see your projected IRA balance at retirement. The IRA Calculator compares Traditional IRA, Roth IRA, and regular taxable savings so you can see which strategy builds the most wealth for your future.

Your current IRA or savings balance

Amount you plan to contribute each year (2025 limit is $7,000; $8,000 if 50+)

years
years
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Average annual growth rate of your investments

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Your marginal tax rate today

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Your expected marginal tax rate when you retire

Results

Traditional IRA Balance (After Tax)

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Traditional IRA Balance (Before Tax)

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Roth IRA Balance (After Tax)

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Regular Taxable Savings (After Tax)

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Years Until Retirement

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Total Contributions

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Retirement Balance Comparison (After Tax)

Results Table

Frequently Asked Questions

What is the difference between a Traditional IRA and a Roth IRA?

A Traditional IRA offers a potential tax deduction on contributions today, with growth that is tax-deferred until withdrawal. A Roth IRA is funded with after-tax dollars, meaning contributions are not deductible, but all qualified withdrawals in retirement are completely tax-free. The better choice depends on whether your tax rate is higher now or in retirement.

How much can I contribute to an IRA in 2025?

In 2025, you can contribute up to $7,000 per year to a Traditional or Roth IRA. If you are age 50 or older, you are eligible for a catch-up contribution, bringing your total limit to $8,000. These limits apply per person, not per account.

Are there income limits for contributing to a Traditional IRA?

Anyone with earned income can contribute to a Traditional IRA regardless of income level. However, the ability to deduct those contributions on your taxes phases out at higher incomes if you or your spouse are covered by a workplace retirement plan. A Roth IRA has direct income limits for contributions.

What rate of return should I use when estimating IRA growth?

A commonly used assumption is 6–8% average annual return for a diversified stock and bond portfolio, which roughly reflects long-term historical market performance after inflation. Conservative investors might use 4–5%, while those invested heavily in equities may use 7–10%. Past performance does not guarantee future results.

When can I withdraw from my IRA without penalty?

You can take penalty-free withdrawals from a Traditional IRA starting at age 59½. Early withdrawals before that age are generally subject to a 10% penalty plus income tax, though certain exceptions apply. Roth IRA contributions (not earnings) can be withdrawn at any time without penalty.

What is a SEP IRA and who is it for?

A SEP (Simplified Employee Pension) IRA is designed for self-employed individuals and small business owners. It allows much higher contribution limits than a Traditional IRA — up to 25% of compensation or $69,000 in 2025. Contributions are tax-deductible and the account grows tax-deferred, just like a Traditional IRA.

What is a SIMPLE IRA?

A SIMPLE (Savings Incentive Match Plan for Employees) IRA is a retirement plan available to small businesses with 100 or fewer employees. Both employees and employers can contribute, with employee limits of $16,000 in 2025 ($19,500 for those 50+). Like a Traditional IRA, contributions are pre-tax and growth is tax-deferred.

Should I choose a Traditional IRA or Roth IRA if I expect to be in a lower tax bracket in retirement?

If you expect your tax rate to be lower in retirement than it is today, a Traditional IRA is typically the better choice because you get the deduction now at a higher rate and pay taxes later at a lower rate. If you expect higher taxes in retirement, a Roth IRA makes more sense since you pay taxes now and enjoy tax-free income later.

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