SIMPLE IRA Calculator
Project SIMPLE IRA balance with employee and employer contributions.
- Last reviewed
- August 26, 2026
- Cost
- Free to use
- Data
- Runs in your browser
- Reviewed by
- Anton Jonson
Total SIMPLE IRA
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Employee Contributions
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Employer Contributions
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Growth
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Methodology
How this calculator handles inputs
This calculator uses the values you enter above and applies the formula explained in the guide below. Results update in the browser and are intended for quick planning, comparison, and sanity-checking.
- Use consistent periods, currencies, and units across inputs.
- Review any assumptions before using the result in a decision.
- Recalculate when rates, prices, tax rules, or business terms change.
Important note
This tool provides general planning information only. It is not tax, legal, financial, accounting, or investment advice. Check the current rules for your location and speak with a qualified professional before making a high-stakes decision.
Guide
How it works
Use this calculator to project a SIMPLE IRA balance with employee and employer contributions.
What this calculator does
The SIMPLE IRA calculator estimates retirement balance from employee contributions, employer contributions, and investment growth. It supports 3% matching and 2% non-elective employer contribution methods.
It uses:
- current age and retirement age
- annual salary
- employee contribution
- employer contribution type
SIMPLE IRA Formula
FV = P(1 + r)^n + PMT × (((1 + r)^n - 1) / r)
Where:
- P = current SIMPLE IRA balance
- PMT = annual employee and employer contributions
- r = annual return
- n = years until retirement
Example calculation
If:
- Salary = 80,000
- Employee contribution = 10,000
- Employer match = 3%
- Employer contribution = 2,400
Then:
- Annual additions = 12,400
- Contributions compound each year
- Existing balance also grows
- Total growth depends on return and time
The SIMPLE IRA grows from both employee and employer contributions.
What is a SIMPLE IRA?
A SIMPLE IRA is a retirement plan for small employers. Employees can defer salary, and employers generally make matching or non-elective contributions.
Why SIMPLE IRA planning matters
- estimates long-term account growth
- values employer contributions
- helps set employee deferrals
- supports small business retirement planning
When to use this calculator
- projecting SIMPLE IRA balance
- comparing employer contribution methods
- choosing employee contribution amounts
- reviewing small business plan value
Common mistakes
- missing employer contribution rules
- ignoring contribution limits
- confusing match and non-elective contributions
- assuming salary never changes
SIMPLE IRA vs SEP IRA
SIMPLE IRA allows employee salary deferrals and employer contributions. SEP IRA is generally employer-funded only.
The best choice depends on business size and contribution goals.
FAQs
What is a SIMPLE IRA?
A SIMPLE IRA is a small-employer retirement plan with employee deferrals and employer contributions.
How do you calculate SIMPLE IRA growth?
Project current balance plus annual employee and employer contributions using compound growth.
What is a good SIMPLE IRA contribution?
A good contribution captures employer benefits and stays within annual limits.
What is the difference between SIMPLE IRA and SEP IRA?
SIMPLE includes employee deferral. SEP is usually employer contribution only.
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