IRA Calculator
Traditional IRA
Results
| IRA Balance at Retirement | — |
|---|---|
| Total Contributions | — |
| Total Growth | — |
| After-Tax Value | — |
How to Use This IRA Calculator
Traditional IRA statements show a big pre-tax number that isn't spendable until Uncle Sam takes his cut. This calculator projects growth from today's balance plus annual contributions, then translates the retirement balance into after-tax dollars using your expected withdrawal tax rate.
- Enter current IRA balance and annual contribution. Planned yearly additions until retirement.
- Set years until retirement and expected return. Monthly compounding is applied internally.
- Enter expected tax rate at withdrawal. Marginal rate you expect on IRA distributions in retirement.
- Press Calculate. Review balance at retirement, total contributions, total growth, and after-tax value.
Compare Roth vs traditional side by side with the Roth IRA Calculator, and estimate mandatory withdrawals with the RMD Calculator.
IRA Formulas and Practical Applications
Traditional IRAs grow tax-deferred—no annual tax on dividends and gains inside the account—but distributions are ordinary income. Planning with after-tax value avoids overestimating retirement spending power.
Balance projection
FV = PV(1 + r)n + PMT × [((1 + r)n − 1) / r]
Starting at $20,000, adding $7,000/year for 20 years at 7% → pre-tax balance near $375,000. At 22% withdrawal tax, after-tax spendable value ≈ $292,000.
Frequently Asked Questions
How is traditional IRA balance projected?
Current balance and annual contributions compound monthly at the expected return rate over the entered years until retirement.
What is after-tax value?
After-tax value equals projected IRA balance minus expected tax at withdrawal, using your entered retirement tax rate on the full balance.
Are IRA contributions tax-deductible in this calculator?
The model focuses on tax-deferred growth and withdrawal tax. Deductibility at contribution time is not separately calculated—see the Roth IRA Calculator for Roth vs traditional comparison.
Does this include RMDs?
No. Required minimum distributions after age 72+ are not modeled. Use the RMD Calculator for withdrawal requirements.
Are contribution limits enforced?
No. Enter your planned annual contribution; IRS limits and catch-up rules are not capped here.