This IRA calculator projects a future balance from current principal, annual contribution, annual return, and years using annual compounding. Defaults of $30,000 start, $7,000 yearly, 7 percent, and 25 years project about $605,566.
Compare a Roth scenario with the Roth IRA calculator, or model workplace deferrals with the 401k calculator. For pension style annual funding, see the pension calculator.
How the formula works
Each year the balance grows by rate r, and each annual contribution compounds for the remaining years. The closed form adds grown principal to the future value of the contribution annuity.
Worked example
Principal $30,000, annual contribution $7,000, rate 7 percent, years 25. Projected balance ≈ $605,566.
| Input | Value |
|---|---|
| Current balance | $30,000 |
| Annual contribution | $7,000 |
| Annual return | 7% |
| Years | 25 |
| Projected balance | ~$605,566 |
How to use the fields
- Current balance is today’s IRA value.
- Annual contribution is the yearly deposit assumption.
- Annual return is the percent growth scenario.
- Years is the projection length.
Traditional versus Roth framing
This page does not decide which account type is better after tax. It shows balance math. Run parallel cases on the Roth page with the same rate and years when you want a side by side growth view, then apply tax rules separately.
Common mistakes
- Entering monthly deposits without converting to an annual total
- Using a gross market return while ignoring fees
- Assuming contribution limits never change
- Treating one projection as a promise
Planning checklist
- Confirm the starting balance from a recent statement.
- Pick a contribution you can fund.
- Stress test with a lower rate.
- Recalculate after large deposits or withdrawals.
Comparing the default to Roth defaults
This IRA default starts at $30,000 for 25 years, while the Roth default starts at $20,000 for 30 years, both with $7,000 annual contributions at 7 percent. They are not meant to be an apples to apples tax verdict. To compare account types fairly, match principal, pmt, rate, and years on both pages, then apply tax rules separately with professional help.
Growth math can look similar while take home outcomes differ because of contribution deductibility and withdrawal taxation in real life.
Contribution habit design
If $7,000 per year is aspirational, model the amount you can automate from paycheck cash flow. Increase pmt when income rises. Consistency across decades usually beats a perfect maximum that only happens once.
Catch up ages and legal limits can change. Enter the dollars you will fund rather than memorizing a single limit forever.
Sequence risk awareness
A flat 7 percent every year ignores bad markets early in retirement or early in a short window. For long accumulation with ongoing contributions, the simple FV formula remains a standard planning sketch. Near retirement, look at broader plans that consider withdrawal sequencing.
Revisit the rate assumption after major allocation changes between stocks and bonds.
Pairing with workplace savings
If you also fund a 401k, project that plan on the 401k calculator and keep this page for IRA contributions. Adding balances from both sketches gives a clearer household retirement view than forcing every dollar into one tool with the wrong deposit timing.
Statement reconciliation
Update principal from your latest statement whenever you revisit the sketch. Old starting balances produce stale endings even if the rate assumption is unchanged. After a large rollover in, put the new total in principal and continue with a realistic annual contribution.
If you withdraw funds, lower principal before projecting forward. The formula does not know about past withdrawals unless you edit the starting value.
Household coordination
If two partners both fund IRAs, project each account separately with its own principal and contribution, then add the endings for a household total. Mixing both contributions into one calculator without care double counts or hides whose balance is whose.
Keep beneficiary forms and account titles aligned with the plan those balances are meant to support.
Rate selection without myths
Historical averages are not promises. Pick a rate that matches your allocation risk tolerance, then run a lower alternate case. Document both results so future you remembers the assumption behind any shareable screenshot of the ending balance.
Limitations
Results ignore RMDs, conversion taxes, and market path risk. They are educational future value estimates on four inputs.