Finance calculators

IRA Calculator

Updated Sep 1, 2026 By Jehan Wadia
Rate Formulas

Your Details

Starting principal applied to all three account types.
Gross amount contributed each year.
Applied uniformly to all account types.
Must be less than your retirement age.
Age at which balances are evaluated.
Used for inflation-adjusted (today's dollars) projections.
Reduces after-tax Roth & taxable contributions.
Applied to the Traditional IRA balance at retirement.
Checked against Roth IRA income phase-out.
Determines your Roth IRA income limits.

Projected Results

Showing: Nominal (future dollars) Affects the headline cards, comparison table, growth chart, and annual schedule.
Traditional / SIMPLE / SEP IRA
$0.00
After-tax at retirement
Roth IRA
$0.00
After-tax (tax-free) at retirement
Regular Taxable Savings
$0.00
After-tax at retirement

Summary Comparison at Retirement

Metric Traditional / SIMPLE / SEP IRA Roth IRA Regular Taxable Savings

What This Means

After-Tax Balance Growth

Annual Schedule

Age Trad. Pre-Tax (Start) Trad. Pre-Tax (End) Trad. After-Tax (Start) Trad. After-Tax (End) Roth After-Tax (Start) Roth After-Tax (End) Taxable After-Tax (Start) Taxable After-Tax (End)

Introduction

An IRA, or Individual Retirement Account, is a special account that helps you save money for retirement. There are different types of IRAs, and each one handles taxes in its own way. A Traditional IRA lets you put in money before taxes, but you pay taxes when you take it out later. A Roth IRA uses money you already paid taxes on, so withdrawals in retirement are tax-free. You can also save in a regular taxable account, which has no special tax breaks at all.

This IRA calculator compares all three options side by side. Enter your current savings, how much you plan to add each year, your expected rate of return, and your tax rates. The tool then shows you how much each account could be worth at retirement, after taxes. It also checks whether your income falls within the 2026 Roth IRA contribution limits and flags if your annual contribution exceeds IRS limits. Use the inflation toggle to see your results in today's dollars so you know what your future savings could actually buy.

How to Use Our IRA Calculator

Enter your financial details below to compare three account types side by side: a Traditional IRA, a Roth IRA, and a Regular Taxable Savings account. The calculator will show you which option could give you the most money after taxes at retirement.

Current IRA Balance: Enter the total amount of money you have saved in your IRA right now. If you are starting from zero, type 0.

Annual Before-Tax Contribution: Enter the gross dollar amount you plan to add to your account each year. This is the amount before any taxes are taken out.

Expected Annual Rate of Return: Enter the yearly percentage you expect your investments to grow. A common estimate for a balanced portfolio is 6%.

Current Age: Enter how old you are today. This must be less than your retirement age.

Retirement Age: Enter the age when you plan to stop working and start using your savings. The calculator will project your balances up to this age.

Inflation Rate: Enter the rate at which you expect prices to rise each year. This is used to show what your future money would be worth in today's dollars.

Current Marginal Tax Rate: Enter the tax rate you pay right now on your income. This affects how much of your contribution actually goes into a Roth IRA or taxable account after taxes.

Expected Tax Rate in Retirement: Enter the tax rate you expect to pay when you withdraw money in retirement. This rate is applied to your Traditional IRA balance when you take it out.

Annual Income: Enter your yearly income before taxes. This is used to check whether you qualify to contribute to a Roth IRA based on IRS income limits.

Filing Status: Select how you file your federal tax return. This determines which Roth IRA income limits apply to you.

What Is an IRA?

An IRA, or Individual Retirement Account, is a special savings account that helps you save money for retirement. You put money in now, it grows over time, and you use it later when you stop working. The government gives you tax benefits for using an IRA, which means you get to keep more of your money.

Types of IRAs

There are three main ways to save for retirement that this calculator compares:

  • Traditional IRA: You don't pay taxes on the money you put in today. Instead, you pay taxes when you take the money out in retirement. This also applies to SIMPLE IRAs and SEP IRAs, which work in a similar way for self-employed people and small business workers. Once you reach a certain age, you will need to take required minimum distributions (RMDs).
  • Roth IRA: You pay taxes on the money now, before you put it in. But when you take it out in retirement, you owe zero taxes. All the growth is yours to keep.
  • Regular Taxable Savings: A normal investment account with no special tax breaks. You pay taxes on your money before you invest it, and you also pay taxes on your earnings each year. Be aware that gains in these accounts may be subject to capital gains tax.

Which IRA Is Better for You?

The best choice depends on your tax rate now versus your tax rate in retirement. If you expect to be in a lower tax bracket when you retire, a Traditional IRA often wins because you skip taxes while your rate is high and pay them when your rate is low. If you expect your tax rate to stay the same or go up, a Roth IRA usually comes out ahead because you lock in today's lower rate and never pay taxes on your growth.

Keep in mind that an IRA is just one piece of your overall retirement plan.

IRA Contribution Limits

The IRS sets a maximum amount you can put into an IRA each year. For 2026, the limit is $7,500 per person. If you are age 50 or older, you get an extra $1,000 in catch-up contributions, bringing your total limit to $8,500.

Roth IRA Income Limits

Not everyone can contribute to a Roth IRA. If you earn too much money, the IRS reduces or eliminates your ability to contribute directly. For 2026, single filers start to lose eligibility at $153,000 in income, and married couples filing jointly start at $242,000. This calculator checks your income against these limits and warns you if you may be affected. Your eligibility is based on your Modified Adjusted Gross Income.

Why Start Early?

The longer your money stays invested, the more it grows thanks to compound interest. Compound interest means you earn returns not just on the money you put in, but also on the returns you already earned. Even small contributions can grow into a large sum over 20 or 30 years. Starting early is one of the most powerful things you can do for your retirement. A quick way to estimate how fast your money doubles is the Rule of 72.

Formulas used

Traditional IRA Balance at Retirement (Pre-Tax)
B_{\text{trad}}^{(n)} = (B_{\text{trad}}^{(n-1)} + C) \times (1 + r)
Traditional IRA After-Tax Value at Retirement
V_{\text{trad}} = B_{\text{trad}}^{(N)} \times (1 - t_{\text{ret}})
Roth IRA Balance at Retirement (After-Tax)
B_{\text{roth}}^{(n)} = \bigl(B_{\text{roth}}^{(n-1)} + C(1 - t_{\text{now}})\bigr) \times (1 + r)
Taxable Account Balance at Retirement (After-Tax)
B_{\text{tax}}^{(n)} = \bigl(B_{\text{tax}}^{(n-1)} + C(1 - t_{\text{now}})\bigr) \times \bigl(1 + r(1 - t_{\text{now}})\bigr)
Inflation-Adjusted (Real) Value
V_{\text{real}} = \frac{V_{\text{nominal}}}{(1 + i)^{N}}

Frequently asked questions

Why is my Roth IRA balance lower than my Traditional IRA balance?

Roth IRA contributions are made with after-tax money. Since you pay taxes before contributing, less money goes into the account each year compared to a Traditional IRA. However, the Roth balance shown is already tax-free. The Traditional IRA balance still has taxes owed on it. Look at the after-tax values in the summary table for a fair comparison.

What does Annual Before-Tax Contribution mean?

This is the gross amount of money you plan to set aside each year before any taxes are taken out. For a Traditional IRA, this full amount goes into your account. For a Roth IRA and a taxable account, the calculator reduces this amount by your current tax rate to reflect what you actually invest after paying taxes.

What tax rate should I enter for retirement?

Enter the tax rate you expect to pay on income when you retire. Most people have a lower rate in retirement because they earn less. A common estimate is 10% to 20%, but your rate depends on your expected retirement income, deductions, and filing status. If you are unsure, try running the calculator with different rates to see how it affects your results.

What rate of return should I use?

A common estimate is 6% to 7% for a balanced mix of stocks and bonds over a long period. If you invest mostly in stocks, you might use 8% to 10%. If you prefer safer investments like bonds, use 3% to 5%. This is a pre-tax, nominal return. The calculator applies taxes and inflation separately.

What if my tax rate is the same now and in retirement?

When your current and retirement tax rates are equal, the Traditional IRA and Roth IRA will produce very similar after-tax results. In that case, the Roth IRA may have a slight edge because you never have to worry about future tax rate increases, and Roth accounts have no required minimum distributions during the owner's lifetime.

Is the starting balance treated the same for all three accounts?

Yes. The calculator applies your entered starting balance equally to all three account types. For the Traditional IRA, the after-tax value of that balance is reduced by your retirement tax rate. For the Roth and taxable accounts, the starting balance is shown at full value since taxes on that money have already been paid.

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