🏛 IRA Calculator
A Traditional IRA lets pre-tax contributions compound tax-deferred until you withdraw in retirement, when the money is taxed as income. This calculator grows your yearly contributions at the expected return and separates what you put in from what compounding added.
Because withdrawals are taxed later, the headline balance overstates spendable money — your tax bracket in retirement decides the true take-home figure.
How to use this calculator
Enter your yearly pre-tax contribution, expected return and years to retirement to project the Traditional IRA future value.
- Enter the Annual contribution (pre-tax dollars).
- Type the Expected annual return as a percentage.
- Set the Years until retirement.
- Press Calculate to see the future value split into contributions and tax-deferred growth.
Frequently asked questions
What does this IRA calculator show?
The future value of yearly pre-tax contributions compounding tax-deferred. At $6,000 a year, 7% returns and 25 years, the balance reaches about $379,494 on $150,000 of contributions.
Is the final balance all spendable?
No. Withdrawals are taxed as ordinary income in retirement, so your future tax bracket decides the true take-home amount. The calculator shows the pre-tax headline figure.
What is tax-deferred growth?
The $229,494 in the example that came from compounding rather than contributions. No tax is due on it until you withdraw.
Does it model the tax deduction on contributions?
No. It shows the account mechanics; the value of the upfront deduction depends on your current marginal tax rate.