FREE IRA CALCULATOR
Estimate how a retirement account can grow over time based on contributions, interest rate, and investment duration.
What is an IRA calculator?
An IRA calculator estimates the future value of an Individual Retirement Account based on your age, annual contributions, expected investment returns, and tax brackets. It helps you compare Traditional IRA, Roth IRA, SEP IRA, and SIMPLE IRA outcomes side by side — so you can make informed decisions about your retirement savings strategy.
Whether you're just starting to save for retirement, evaluating employer-sponsored plans, or helping team members understand their retirement benefits, this calculator shows the real impact of contributions, compounding returns, and tax treatment over time.
What is an IRA?
An Individual Retirement Account (IRA) is a tax-advantaged savings account designed to help individuals save for retirement. IRAs offer significant tax benefits that encourage long-term savings — either through tax-deductible contributions, tax-free growth, or tax-free withdrawals, depending on the account type.
The IRS sets annual contribution limits and eligibility rules for each type of IRA. For 2026, the standard contribution limit for Traditional and Roth IRAs is $7,500 per year ($8,600 if you're age 50 or older). SEP IRAs allow up to $72,000, and SIMPLE IRAs allow up to $17,000 in employee deferrals.
Types of IRAs
Traditional IRA
Contributions are made with pre-tax dollars, reducing your taxable income in the contribution year. Investments grow tax-deferred until retirement. Withdrawals after age 59½ are taxed as ordinary income at your retirement tax rate. Required Minimum Distributions (RMDs) begin at age 73.
Roth IRA
Contributions are made with after-tax dollars — no upfront tax deduction. However, investments grow tax-free, and qualified withdrawals after age 59½ are completely tax-free. There are no RMDs during the owner's lifetime, making Roth IRAs ideal for long-term wealth transfer and tax-free retirement income.
SEP IRA
A Simplified Employee Pension (SEP) IRA is established by employers (including self-employed individuals). Only the employer contributes — up to the lesser of 25% of compensation or $72,000 for 2026. Contributions and growth follow the same tax-deferred model as Traditional IRAs.
SIMPLE IRA
A Savings Incentive Match Plan for Employees (SIMPLE) IRA is designed for small businesses with 100 or fewer employees. Both employee and employer contribute. Employee deferrals are capped at $17,000 for 2026, with employer matching up to 3% of compensation. Tax treatment follows the Traditional IRA model.
How to use this IRA calculator
This tool calculates IRA growth and retirement withdrawals in real time. Adjust any input and the results update instantly — no submit button required.
- Enter your age details — input your current age, planned retirement age, and how many years you expect to take withdrawals. Contribution years are derived automatically.
- Set your tax brackets — enter your current marginal tax rate during the contribution phase and your expected tax bracket at retirement. The difference between these rates determines whether a Traditional or Roth IRA provides a better after-tax outcome.
- Specify your annual contribution — enter the pre-tax annual amount. The Roth IRA after-tax contribution is calculated automatically by applying your current tax bracket.
- Set the expected return rate — enter the annual investment return you expect. The S&P 500 historical average is roughly 10% before inflation.
- Review results — see side-by-side comparisons for Traditional IRA (also applicable to SEP and SIMPLE IRAs) and Roth IRA, including balance at retirement, annual withdrawal, tax on withdrawals, and net take-home income.
- Export to PDF — click Export, enter an employee name, and download a formatted report for payroll records or financial planning.
IRA calculation formulas
This calculator uses the Future Value of an Annuity Due (contributions at the start of each year) and the Payout Annuity Due (withdrawals at the start of each period):
Balance at Retirement
Balance = C × [((1 + r)N − 1) ÷ r] × (1 + r)
Where C is the annual contribution, r is the annual return rate, and N is the number of contribution years. The extra (1 + r) factor accounts for contributions made at the start of each year.
Annual Withdrawal
W = Balance × [r ÷ ((1 − (1 + r)−M) × (1 + r))]
Where M is the number of withdrawal years. This ensures the balance is fully distributed over the withdrawal period while the remaining balance continues earning returns.
Tax treatment
- Traditional IRA — Annual Take Home = Withdrawal × (1 − Retirement Tax Rate)
- Roth IRA — Contribution = Pre-tax Amount × (1 − Current Tax Rate); Withdrawals are 100% tax-free
Traditional IRA vs Roth IRA
The choice between Traditional and Roth depends on your current and expected future tax rates:
| Feature | Traditional IRA | Roth IRA |
|---|---|---|
| Contributions | Pre-tax (tax-deductible) | After-tax (no deduction) |
| Growth | Tax-deferred | Tax-free |
| Withdrawals | Taxed as ordinary income | Tax-free (if qualified) |
| Best when | Current tax rate is higher than retirement | Retirement tax rate is higher than current |
| RMDs | Required at age 73 | None during owner's lifetime |
| 2026 Limit | $7,500 ($8,600 if 50+) | $7,500 ($8,600 if 50+) |
When your contribution and retirement tax rates are equal, both account types produce identical after-tax results. The breakpoint is the relationship between current tax rate and retirement tax rate.
IRA contribution limits for 2026
| IRA Type | Under 50 | Age 50+ | Notes |
|---|---|---|---|
| Traditional / Roth | $7,500 | $8,600 | Combined limit across all Traditional and Roth accounts |
| SEP IRA | Lesser of 25% of compensation or $72,000 | Employer contributions only | |
| SIMPLE IRA | $17,000 | $21,000 | Employee deferral + employer match (up to 3%) |
Key features
- Side-by-side comparison
- See Traditional IRA and Roth IRA results together — balance at retirement, annual withdrawal, tax impact, and net take-home income — so you can compare strategies at a glance.
- Covers all IRA types
- Results for Traditional IRA apply equally to SEP IRA and SIMPLE IRA, since they share the same tax-deferred growth and taxed-withdrawal model.
- Annuity Due model
- Uses beginning-of-year contributions and withdrawals for accurate compounding — matching how most real-world IRA contributions are made.
- PDF export with employee name
- Generate a formatted PDF report for payroll records, financial planning, or employee benefit reviews. Just enter an employee name and download.
- Instant results
- All fields recalculate in real time as you type — no submit button required. Quickly test different contribution, return rate, and tax scenarios.
- No sign-up, no ads
- 100% free, runs entirely in your browser, and your data never leaves your device.
Who benefits from this calculator?
- Employees planning retirement — model how different contribution levels and return rates affect your retirement income before and after taxes.
- Small-business owners — evaluate SEP IRA or SIMPLE IRA options for your team and understand the long-term value of employer-sponsored retirement plans.
- HR and payroll teams — generate PDF reports to help team members understand their IRA projections during benefits enrollment or annual reviews.
- Financial planners — quickly compare Traditional vs Roth outcomes for clients based on current and projected tax brackets.
- Self-employed individuals — compare SEP IRA contribution strategies with Traditional and Roth options to optimize retirement savings.
Important considerations
- Early withdrawal penalties — withdrawals from Traditional, SEP, and SIMPLE IRAs before age 59½ incur a 10% federal penalty on top of income tax. Roth IRA contributions (not earnings) can be withdrawn penalty-free at any time.
- Required Minimum Distributions (RMDs) — Traditional, SEP, and SIMPLE IRAs require annual withdrawals starting at age 73. Roth IRAs have no RMDs during the owner's lifetime.
- Roth income limits — for 2026, direct Roth IRA contributions phase out for single filers earning $153,000–$168,000 and married filing jointly earning $242,000–$252,000. Backdoor Roth conversions may still be available.
- Inflation impact — this calculator shows nominal values. Actual purchasing power will be lower due to inflation. A 7% return after 3% inflation is equivalent to roughly 4% real return.
- Tax bracket simplification — the calculator applies a single marginal tax rate. Actual taxes involve progressive brackets, state taxes, and potential deductions that may change your effective rate.
Helpful resources
- IRS — IRA Contribution Limits — official annual contribution limits and catch-up provisions.
- IRS Publication 590-A — Contributions to IRAs — comprehensive rules for contributing to Traditional, Roth, SEP, and SIMPLE IRAs.
- IRS Publication 590-B — Distributions from IRAs — withdrawal rules, RMD tables, and tax treatment of IRA distributions.
- Investor.gov — Compound Interest Calculator — SEC-provided tool to visualize the power of compound growth.
Other free tools you might find useful
Calculate income with the Annual Income Calculator, evaluate salary changes with the Pay Raise Calculator, or convert salary to hourly with the Salary to Hourly Calculator.
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IRA calculator FAQ
What is an IRA calculator?
An IRA calculator estimates how much your Individual Retirement Account will be worth at retirement based on your age, annual contributions, expected return rate, and tax brackets. It compares Traditional IRA, Roth IRA, SEP IRA, and SIMPLE IRA results side by side.
Is this IRA calculator free?
Yes. This tool is 100% free — no sign-up, no download, no credit card. It runs entirely in your browser and your data never leaves your device.
What is the difference between a Traditional IRA and a Roth IRA?
Traditional IRA contributions are pre-tax and grow tax-deferred, but withdrawals are taxed as income. Roth IRA contributions are after-tax, but qualified withdrawals are completely tax-free. The better choice depends on whether you expect a higher or lower tax bracket in retirement.
How does the calculator handle taxes?
For Traditional IRAs, the calculator applies your retirement tax bracket to annual withdrawals to compute after-tax take-home income. For Roth IRAs, contributions are reduced by your current tax bracket, but withdrawals are tax-free.
What are SEP IRA and SIMPLE IRA?
SEP IRA and SIMPLE IRA are employer-sponsored retirement plans. They follow the same tax-deferred growth and taxed-withdrawal model as Traditional IRAs. The main differences are contribution limits and eligibility rules.
What annual return rate should I use?
The S&P 500 has historically returned about 10% annually before inflation, or roughly 7% after inflation. A conservative estimate is 6–7%, while 8–10% reflects more optimistic growth. Your actual return depends on asset allocation and market conditions.
Does this calculator account for IRA contribution limits?
The calculator accepts any contribution amount for modeling purposes. For 2026, the IRS limits are $7,500 per year for Traditional and Roth IRAs ($8,600 if age 50+), up to $72,000 for SEP IRAs, and $17,000 employee deferral for SIMPLE IRAs.
Can I export the results?
Yes. Click the Export button, enter an employee name, and download a PDF report with all inputs and calculated results — ready for payroll records or financial planning.
Is my data saved?
Yes. Your inputs are automatically saved in your browser's local storage. Return later to adjust your calculations without re-entering data. Click the Reset button to clear all saved values.
By calculating future IRA value, it helps individuals
compare retirement savings scenarios and understand
the long-term impact of regular contributions.
Shiftflow supports retirement and financial planning by making IRA growth calculations easier to
evaluate alongside other income and savings data.
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