IRA Calculator
- Updated
- Formula shown
- Free, no sign-up
Results
$225,000 of contributions grow to $628,513 in a traditional IRA, worth $553,091 after 12% tax, against $415,574 in a taxable account
- Traditional IRA
- $553,091
- Roth IRA (same cost)
- $490,240
- Taxable account
- $415,574
| Age at year end | Contribution | IRA before tax | IRA after tax | Taxable account |
|---|---|---|---|---|
| 36 | $7,500 | $7,950 | $6,996 | $6,148 |
| 37 | $7,500 | $16,377 | $14,412 | $12,610 |
| 38 | $7,500 | $25,310 | $22,272 | $19,402 |
| 39 | $7,500 | $34,778 | $30,605 | $26,540 |
| 40 | $7,500 | $44,815 | $39,437 | $34,041 |
| 41 | $7,500 | $55,454 | $48,799 | $41,926 |
| 42 | $7,500 | $66,731 | $58,723 | $50,212 |
| 43 | $7,500 | $78,685 | $69,243 | $58,922 |
| 44 | $7,500 | $91,356 | $80,393 | $68,075 |
| 45 | $7,500 | $104,787 | $92,213 | $77,695 |
If neither you nor your spouse is covered by a workplace retirement plan, traditional IRA contributions are fully deductible at any income.
Withdrawals before 59½ are usually taxed and penalized, and required minimum distributions start in your 70s. The return and tax rates are assumptions.
How to use the IRA calculator
- Enter your age, your retirement age and how much you will contribute each year, up to the 2026 limit.
- Enter an assumed return, your tax rate now and the rate you expect on withdrawals in retirement.
- Enter the yearly tax rate on growth in a taxable account, such as dividends and realized gains.
- Choose whether you or your spouse has a workplace plan, to see the 2026 income range for the deduction.
Traditional IRA vs taxable account formula
Taxable = FV(C × (1 − Tnow), R × (1 − t))
FV(C, R) = C × [(1 + R)n − 1] ÷ R × (1 + R)
C is the yearly contribution made at the start of each year, R the assumed return and n the number of years. A deductible IRA contribution costs you C of pre-tax income, so the fair alternative invests what is left after tax now, C × (1 − Tnow), in a taxable account. There, each year's growth is taxed at t. The IRA grows untaxed, but every dollar withdrawn is taxed at your retirement rate Tlater. When the two income tax rates are equal, a traditional IRA and a Roth IRA give the same result; a lower rate in retirement favours the traditional IRA.
Worked example
You are 35 and put $7,500 a year into a traditional IRA until 65, at an assumed 6% return. Your tax rate is 22% now and you expect 12% in retirement.
- The IRA grows to $628,513. After 12% tax on withdrawal it is worth $553,091.
- Deducting the contributions saves $49,500 of tax over the years. Investing the after-tax money instead, with 15% tax on yearly growth, reaches $415,574: the IRA comes out $137,517 ahead.
- A Roth IRA funded with the same after-tax cost would reach $490,240, less than the traditional IRA because your rate falls in retirement.
After-tax value by tax rates now and later
Same example: $7,500 a year for 30 years, 6% return, 15% yearly tax on taxable growth.
| Tax now | Tax later | Traditional IRA | Roth IRA | Taxable |
|---|---|---|---|---|
| 12% | 12% | $553,091 | $553,091 | $468,853 |
| 22% | 12% | $553,091 | $490,240 | $415,574 |
| 22% | 22% | $490,240 | $490,240 | $415,574 |
| 24% | 32% | $427,389 | $477,670 | $404,918 |
| 32% | 22% | $490,240 | $427,389 | $362,295 |
2026 traditional IRA deduction limits
The contribution limit is $7,500, or $8,600 at 50 or older. If you or your spouse is covered by a workplace retirement plan, the deduction phases out over these ranges of modified AGI:
| Situation | Phase-out starts | No deduction from |
|---|---|---|
| Single or head of household, covered by a workplace plan | $81,000 | $91,000 |
| Married filing jointly, contributing spouse covered by a workplace plan | $129,000 | $149,000 |
| Married filing jointly, not covered but spouse is covered | $242,000 | $252,000 |
| Married filing separately, covered by a workplace plan | $0.00 | $10,000 |
If neither of you is covered, the contribution is deductible at any income. Source: IRS News Release IR-2025-111, tax year 2026, checked October 19, 2026.
Tips
- Non-deductible contributions change the picture. If your income is above the range, contributions are not deductible and the IRA loses most of its advantage. Many people then consider a Roth IRA; see the Roth IRA calculator.
- Required distributions. Traditional IRAs must start paying out in your 70s. The RMD calculator shows how much.
- Use your marginal rate. The tax saved on a deduction comes off your top bracket, so use your marginal rate now, not your average rate.
- Look at the whole plan. Add your workplace plan with the 401(k) calculator and check your income goal in the retirement calculator.
Frequently asked questions
Is a traditional IRA better than a taxable account?
Usually, if the contributions are deductible. In the example of $7,500 a year from 35 to 65 at an assumed 6%, with 22% tax now and 12% in retirement, the IRA is worth about $553,091 after tax against $415,574 in a taxable account taxed at 15% on yearly growth.
How much can I put in an IRA in 2026?
Up to $7,500 across all your traditional and Roth IRAs, or $8,600 if you are 50 or older by the end of the year. You also cannot contribute more than your taxable compensation for the year.
Can I deduct my traditional IRA contribution?
Yes, in full, if neither you nor your spouse is covered by a workplace retirement plan. If you are covered, the 2026 deduction phases out between $81,000 and $91,000 of modified AGI for single filers and between $129,000 and $149,000 for married couples filing jointly.
Traditional or Roth IRA?
It mostly depends on your tax rate now compared with retirement. If the rates are equal, both give the same after-tax result. With 22% now and 12% later, the traditional IRA in the example ends at about $553,091 and a Roth with the same after-tax cost at about $490,240.
What tax rate should I use for retirement?
Estimate the marginal rate you will pay on withdrawals, including state tax. Many people have lower income in retirement, but required distributions, Social Security and pensions can push the rate up. Try a few rates to see how sensitive the result is.