CalcMastermind logo

IRA Calculator

Project a traditional IRA balance from its current value plus yearly contributions.

Result

Ending balance
$551,291.92
Total contributions
$195,000.00
Total growth
$356,291.92
Export:
Contributions vs. growth
  • Total contributions$195,000.0035.4%
  • Total growth$356,291.9264.6%

Balance over time

Balance over time$1,000,000.00$750,000.00$500,000.00$250,000.00$0.00Yr 0Yr 4Yr 8Yr 12Yr 16Yr 20Yr 24

How the projection works

The calculator starts with your current IRA balance and grows it at your expected annual return. On top of that, it adds a fixed contribution each year and lets every dollar — old balance and new contributions alike — keep compounding for the years that remain.

Compounding is the engine here: returns earned in early years go on to earn their own returns later. Because of that, contributions made sooner do far more work than the same dollars added near the end, which is why starting early matters more than almost any other lever.

Reading your results

The ending balance is the projected value at the end of the period. Total contributions is the money you actually put in — your starting balance plus every yearly contribution — and total growth is everything earned on top of that.

The donut chart shows how much of the ending balance came from your own contributions versus investment growth. Over long horizons growth often dwarfs contributions. The balance chart traces the account climbing year by year.

Practical tips

A few ways to get more out of a traditional IRA:

  • Contribute up to the annual IRS limit if you can — unused contribution room generally does not carry forward.
  • Aim to fund the account early in the year so contributions have more time to compound.
  • Use a realistic long-run return rather than a recent hot streak; markets swing year to year.
  • Remember that traditional IRA contributions may be tax-deductible now, which can lower this year’s tax bill.

Caveats and common mistakes

This model assumes a steady return every year and contributions added at year-end. Real returns are volatile, and the order of good and bad years affects the outcome. It also ignores fees and inflation, so the future balance buys less than the same number does today. Traditional IRA withdrawals in retirement are taxed as ordinary income, and early withdrawals can trigger penalties.

This is an educational estimate, not financial or tax advice. Confirm contribution limits, deduction eligibility, and your own strategy with a qualified professional.

Formula

r = annualReturn/100; n = years; fv = B·(1+r)ⁿ + C·(((1+r)ⁿ − 1)/r)

Frequently asked questions

Are IRA withdrawals taxed?
With a traditional IRA, contributions may be deductible and withdrawals in retirement are taxed as ordinary income. A Roth IRA reverses this.