IRA Calculator

How to use this calculator

Enter your current IRA balance, your annual contribution, your expected return rate, and the number of years until you plan to retire. The calculator projects the balance your account could grow to by retirement. For a traditional IRA, the projection shows pre-tax value — what's in the account before withdrawals are taxed as ordinary income. For a Roth IRA, it shows the after-tax value, since qualified Roth withdrawals are tax-free.

Use 6–7% as a reasonable long-term real return estimate for a diversified stock-heavy portfolio. If your IRA holds mostly bonds or is conservatively allocated, 3–4% is more realistic. The difference between 5% and 7% over 30 years on $200,000 in contributions is roughly $400,000 in projected balance — the rate assumption matters more than it might seem.

What your result means

The projected balance tells you whether you're on track for the retirement income level you're targeting. A useful benchmark: multiply the projected balance by 0.04 to estimate the annual income it can sustainably support under the 4% withdrawal rule. A $500,000 IRA supports roughly $20,000/year in withdrawals; a $1,200,000 IRA supports about $48,000/year. Add any Social Security or pension income to get total projected retirement income, then compare that to your expected retirement spending.

What the math leaves out

IRA contribution limits are set by the IRS and adjusted periodically. The 2026 limit is $7,500 per year ($8,600 for those 50 and older). If you're contributing the maximum each year, this calculator applies a fixed annual contribution — it doesn't model the annual inflation adjustments to the limit that tend to happen every few years.

For traditional IRAs, the deductibility of contributions depends on your income and whether you or your spouse have access to a workplace retirement plan. Above certain income thresholds, contributions may be non-deductible, which changes the tax math significantly. A non-deductible traditional IRA contribution creates a "basis" that tracks tax-free portions of future withdrawals — this gets complicated quickly and is worth clarifying with a tax professional.

Traditional IRA vs. Roth IRA: key differences

Traditional IRA contributions may be tax-deductible today, but withdrawals in retirement are taxed as ordinary income. Roth IRA contributions are made with after-tax dollars, and qualified withdrawals (after age 59½ and a 5-year holding period) are completely tax-free. Traditional IRAs have required minimum distributions starting at age 73; Roth IRAs have no RMDs during the owner's lifetime. For most workers under 50 who expect their tax rate to stay the same or rise, Roth tends to win on math. For high earners in peak earning years expecting lower retirement income, traditional often makes more sense.

Frequently asked questions

Can I contribute to both an IRA and a 401(k)?
Yes. Contributing to a 401(k) at work doesn't prevent you from contributing to an IRA, though it may affect the deductibility of traditional IRA contributions above certain income thresholds. The contribution limits are separate — the $7,000 IRA limit is independent of the $23,500 401(k) limit.

What's the deadline to contribute to an IRA?
IRA contributions for a given tax year can be made up to the tax filing deadline of the following year — typically April 15. If you contribute in 2026 before April 15, 2026, you can designate it as a 2025 contribution if it is made by the 2025 filing deadline, or as a 2026 contribution for the current tax year. This gives you extra time to fund a prior year's IRA if your finances allow.

Can I open an IRA if I don't have earned income?
You must have earned income (wages, self-employment income, or certain other compensation) to contribute to an IRA. Investment income, Social Security, and pension income don't count. The exception: a spousal IRA allows a working spouse to contribute on behalf of a non-working spouse, up to the same annual limit.

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