IRA Calculator
Calculate Traditional IRA growth with tax-deferred contributions and estimated tax savings at retirement.
Input Parameters
Results
Traditional IRA
Traditional IRA contributions may be tax-deductible depending on your income and workplace retirement plan. Earnings grow tax-deferred until withdrawal. Required Minimum Distributions (RMDs) start at age 73.
What is the IRA Calculator?
The Individual Retirement Account (IRA) Calculator projects the long-term compounding growth of your tax-advantaged retirement investments. It is specifically designed to forecast traditional, pre-tax IRA accounts up to retirement age.
How It Works (Formula)
The calculator uses the Future Value of an Annuity formula. Because traditional IRAs are funded with pre-tax dollars, the upfront investment capacity is higher. The tool compounds the initial balance alongside steady monthly contributions, capping annual inputs at the legal IRS limit.
$$ FV = P(1+r)^n + PMT \left[ \frac{(1+r)^n - 1}{r} \right] $$
The exponential growth algorithm for long-term equity investing.
How to Use It
Enter your current age and the age you wish to retire. Input your current IRA balance and the amount you plan to contribute annually. The calculator will apply a standard market return (e.g., 7%) and graph your path to retirement wealth.