Transparent method
The formula
Worked example
Example inputs
How to interpret the result
Separating an IRA's contributions from its projected growth reveals how much of the future balance actually depends on continuing to save versus how much depends on market performance doing the compounding, two very different levers, only one of which is directly within the account holder's control.
Before you rely on it
What to check
Look at the contribution and growth components of the projection separately to see which lever, saving more or assuming higher returns, actually has more room to move the target.
The common error
Where people go wrong with IRA growth calculator
Focusing entirely on the assumed growth rate while treating the contribution amount as fixed. Increasing contributions is often the more controllable, reliable lever compared to hoping for a higher-than-typical return.
Sensitivity evidence
How expected annual return changes the future value
| Expected annual return | Future value | Estimated growth |
|---|---|---|
| 5.0% | $371,551 | $189,651 |
| 6.0% | $435,270 | $253,370 |
| 7.0%worked example | $512,350 | $330,450 |
| 8.0% | $605,830 | $423,930 |
| 9.0% | $719,473 | $537,573 |
Every input, tested
Which input moves the future value most
| Input | Tested from | To | Future value at each end | Swing |
|---|---|---|---|---|
| Time horizon | 19.0 years | 31.0 years | $302,853 to $830,806 | $527,953 (103%) |
| Expected annual return | 6.0% | 8.0% | $435,270 to $605,830 | $170,559 (33%) |
| Monthly contribution | $525 | $641 | $465,366 to $559,334 | $93,968 (18%) |
| Starting amount | $6,300 | $7,700 | $508,342 to $516,358 | $8,016 (1.6%) |
| Compounds per year | Annually | Daily | $510,264 to $512,547 | $2,283 (0.4%) |
Two variables at once
Future value by expected annual return and starting amount
| Expected annual return \ Starting amount | $5,600 | $7,000 | $8,400 |
|---|---|---|---|
| 5.0% | $366,677 | $371,551 | $376,425 |
| 6.0% | $429,019 | $435,270 | $441,521 |
| 7.0% | $504,334 | $512,350 | $520,365 |
| 8.0% | $595,553 | $605,830 | $616,106 |
| 9.0% | $706,301 | $719,473 | $732,645 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Starting amount | $7,000 |
| Monthly contribution | $583 |
| Expected annual return | 7.0% |
| Time horizon | 25.0 years |
| Compounds per year | Monthly |
| Future value | $512,350 |
| Estimated growth | $330,450 |
Complete evidence
Full projection schedule
Show all 25 rows
| Period | Opening balance | Contribution | Growth | Ending balance |
|---|---|---|---|---|
| Year 1 | $7,000 | $6,996 | $490 | $14,486 |
| Year 2 | $14,486 | $6,996 | $1,014 | $22,496 |
| Year 3 | $22,496 | $6,996 | $1,575 | $31,067 |
| Year 4 | $31,067 | $6,996 | $2,175 | $40,237 |
| Year 5 | $40,237 | $6,996 | $2,817 | $50,050 |
| Year 6 | $50,050 | $6,996 | $3,504 | $60,550 |
| Year 7 | $60,550 | $6,996 | $4,238 | $71,784 |
| Year 8 | $71,784 | $6,996 | $5,025 | $83,805 |
| Year 9 | $83,805 | $6,996 | $5,866 | $96,667 |
| Year 10 | $96,667 | $6,996 | $6,767 | $110,430 |
| Year 11 | $110,430 | $6,996 | $7,730 | $125,156 |
| Year 12 | $125,156 | $6,996 | $8,761 | $140,913 |
| Year 13 | $140,913 | $6,996 | $9,864 | $157,773 |
| Year 14 | $157,773 | $6,996 | $11,044 | $175,813 |
| Year 15 | $175,813 | $6,996 | $12,307 | $195,116 |
| Year 16 | $195,116 | $6,996 | $13,658 | $215,770 |
| Year 17 | $215,770 | $6,996 | $15,104 | $237,870 |
| Year 18 | $237,870 | $6,996 | $16,651 | $261,517 |
| Year 19 | $261,517 | $6,996 | $18,306 | $286,819 |
| Year 20 | $286,819 | $6,996 | $20,077 | $313,892 |
| Year 21 | $313,892 | $6,996 | $21,972 | $342,861 |
| Year 22 | $342,861 | $6,996 | $24,000 | $373,857 |
| Year 23 | $373,857 | $6,996 | $26,170 | $407,023 |
| Year 24 | $407,023 | $6,996 | $28,492 | $442,511 |
| Year 25 | $442,511 | $6,996 | $30,976 | $480,482 |
Where the inputs come from
Starting amount is your IRA balance today, and monthly contribution is what you add, which for a traditional or Roth IRA is limited by an annual IRS figure divided by twelve. The example uses about $583 a month, or roughly $7,000 a year. Expected return is a planning assumption for the mix of funds inside the account, and the horizon is years until you will withdraw. Contribution limits rise over time and are higher after age 50.
When the result stops applying
The projection assumes you can contribute the full amount every year, but eligibility depends on earned income, and Roth contributions phase out at higher incomes. It ignores the tax difference between account types and the fees on the funds held. Returns are assumed steady, while real returns are uneven, and early withdrawals before 59½ may bring a 10% penalty.
What to compare it with
Compare account types with the traditional versus Roth IRA calculator, and see the Roth IRA contribution and traditional IRA deduction pages for the tax side. The retirement savings calculator adds workplace accounts. The backdoor Roth page explains contributions when your income is above the Roth limit.
People also ask
Frequently asked questions
How much can I put in an IRA each year?
The IRS sets a yearly limit that changes with inflation, with extra catch-up room for people 50 and older. The combined limit applies across all your traditional and Roth IRAs.
Is an IRA better than a 401(k)?
They serve different roles. A 401(k) with a match usually comes first, and an IRA offers a wider choice of investments and lower fees, so many people use both.
Can I withdraw from an IRA before retirement?
Yes, but earnings withdrawn before 59½ usually face a 10% penalty plus tax, with some exceptions such as a first-home purchase, education costs and disability.