How to use the IRA Calculator
The IRA calculator projects a traditional IRA balance and shows an approximate after-tax value using your expected retirement tax rate.
What you need to enter
- Current balance ($)
- Annual contribution ($)
- Years
- Annual return (%)
- Tax rate in retirement (%)
The formula
The balance grows with annual contributions and returns. After-tax value = balance × (1 − tax rate).
Worked example
Using the default values in the calculator:
- Current balance ($): 10000
- Annual contribution ($): 7000
- Years: 25
- Annual return (%): 7
- Tax rate in retirement (%): 22
| Balance at retirement | $512,513.60 |
| Total contributions | $185,000.00 |
| Growth | $327,513.60 |
| After-tax value (taxed at 22%) | $399,760.61 |
Tips for better results
- Compare with the Roth case to choose which fits your tax situation.
- Remember required minimum distributions later.
Common mistakes to avoid
- Ignoring tax on withdrawals.
- Exceeding contribution limits.
Please note: Calculators and guides give general estimates, not financial, tax or investment advice. Real offers depend on your lender, location and personal situation. See our Disclaimer.